Veolia Environnement: Dalkia to Design and Operate One of Canada’s Largest Biomass Plants

Regulatory News:

Veolia Environnement (Paris:VIE):

Dalkia and Canadian fund Fengate Capital Management Ltd. will develop one of Canada’s largest biomass plants which will be designed, built and operated by Dalkia in Fort St. James, British Columbia.

Dalkia and Fengate Capital Management Ltd. have closed the financing for this state of the art biomass plant. Under this DFBOM (Design, Finance, Build, Operate and Maintain) contract, Dalkia will operate and maintain the facilities and manage the wood biomass supply and preparation. Funding for this project, one of the largest in Canada and North America, will be provided by the Canadian fund Fengate Capital Management Ltd. leading an international pool of banks. Dalkia and Fengate Capital Management Ltd. have contracted Iberdrola Engineering & Construction to build the plant.

With an electricity capacity of 40 MW, this new plant will consume 307,000 metric tons of biomass a year. Dalkia will manage the biomass supply working closely with local forestry companies, sawmills and the First Nations. The biomass used by this plant will largely comprise waste from the British Columbia forestry industry, such as sawmill and logging waste, and trees killed by the mountain pine beetle epidemic that has ravaged British Columbia forests over past ten years.

This plant will generate electricity sold to BC Hydro & Power Authority to power almost 40,000 Canadian households. It will avoid the annual discharge of around 95,000 metric tons of CO2 – the equivalent of more than 45,000 cars off the road.

The project will also create around 250 jobs during the construction phase, and then 80 new direct and indirect jobs during the 30-year operation period.

"This project will capitalize on Dalkia’s worldwide experience in designing and operating more than 450 biomass plants. In winning this contract, Dalkia has demonstrated its know-how and expertise, and the relevance of its international growth strategy. Dalkia and Fengate Capital Management Ltd. are together finalizing an identical biomass power plant in Merritt, British Columbia,” explained Franck Lacroix, Chairman of Dalkia.

This project will generate for Dalkia cumulative operating and biomass sales of more than €600 million over the contract’s 30-year term.

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About Dalkia
A subsidiary of Veolia Environnement and Electricité de France (EDF), Dalkia, a global leader in energy services, provides innovative solutions to support the sustainable growth of cities and businesses. In an era of climate change, volatile energy prices and scarce resources, Dalkia offers customers its expertise in developing, constructing and operating greener and more economical energy solutions. With more than 50,000 employees in 35 countries, Dalkia reported managed revenue of €8.9 billion in 2012. www.dalkia.com