France-headed independent renewable energy provider Albioma SA has announced that it has acquired the shuttered La Granaudière wood pellet production plant located in Saint-Michel-des-Saints, Québec (QC), Canada. The transaction, the value of which has not been disclosed, will diversify the Group's sources of sustainable biomass supplies, supplementing the existing portfolio of contracts with top-tier international suppliers.
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Commissioned in late 2020, the La Granaudière wood pellet facility produces Sustainable Biomass Program (SBP) certified pellets from wood waste or low-grade wood from certified sustainably managed forests and, according to Albioma, is “ideally positioned” to supply the Group’s Caribbean power plants.
The transaction marks the culmination of a process organized by Raymond Chabot in its capacity as the official receiver of the facility. La Granaudière had suspended operations at the plant in July 2021, and a receivership procedure was initiated in August 2021.
The cost of production had exceeded the selling prices of pellets and the company no longer had the liquidity required to continue operations.
The deal also includes a long-term agreement granting access to a 45 000-tonne pellet storage facility in the Port of Québec, as well as raw material supply guarantees issued by Québec’s Ministry of Forests, Wildlife, and Parks (MFFP).
The plant is due to be recommissioned in early 2022, with its nominal annual production capacity of 200 000 tonnes to be achieved following some additional investments.
We extend a warm welcome to the staff at La Granaudière, as they bring their expertise to Albioma. Through this transaction, which will enable us to produce pellets to very strict sustainability requirements, Albioma is renewing and stepping up its commitment to the energy transition in Overseas France. Supplementing locally-sourced biomass, to which priority will naturally be given in order to stimulate the circular economy, this diversified supply is essential, ensuring that we are able to continuously generate renewable energy in non-interconnected areas, commented Frédéric Moyne, Chairman, and CEO of Albioma.
