According to a local newspaper report, Great Northern Timber Group (GNT) is "poised to buy and restart" the shuttered Scotia Atlantic Biomass Company Ltd (SAB) wood pellet plant in Musquodoboit, Nova Scotia, Canada.
According to the local newspaper The Chronicle Herald, Halifax-based Great Northern Timber Group (GNT) has a “tentative agreement” with the receiver of the shuttered pellet facility to buy the machinery, equipment and property. The deal is subject to court approval and the value has not been disclosed.
GNT is reported to have secured fibre supply commitments and is prepared to make several upgrades and repairs to the plant to improve productivity. The 120 000 tonne per annum capacity plant could be operational in Q4 2017 subject to “the financial close, repairs and upgrades progress well”.
The plant originally went on the market in April 2016 when former owners Viridis Energy Inc., engaged US-headed pellet industry consultants FutureMetrics LLC to “pursue alternatives” in a bid to resolve outstanding indebtedness of its British Columbia (BC) subsidiary Okanagan Pellet Company (OPC).
Alternatives included finding a buyer or buyers for one or all of Viridis three subsidiaries: Okanagan Pellet Company (OPC), Scotia Atlantic Biomass Company (SAB), and Viridis Merchants Inc., (VMI).
In July 2016 the SAB plant was closed in an effort to stem the financial bleeding. OPC was subsequently sold in October 2016 to the US pellet wholesaler and distributor, American Biomass that carried the OPC brand whereas SAB went into receivership in November 2016.
GNT operates a 400 000 tonne per annum wood chipping and ship loading facility in Sheet Harbour, NS and a woodchip loading facility in Dalhousie, New Brunswick (NB).
