Plantation Energy Australia (PEA) has secured AU$7 million of funding to restart its shuttered wood pellet plant in Albany, Western Australia (WA). Commercial production expected to start in third quarter 2017.
Argonaut Ltd, an Australia-headed integrated investment house with corporate, stockbroking and research and special situations financing capability in the Australia/Asian region, has revealed that Plantation Energy Australia (PEA) has secured AU$7 million in funding to restart operations at its pellet plant in Albany, Western Australia (WA).
The 250 000 tonne-per-annum capacity plant, which was shuttered in 2012, has been in care and maintenance ever since. According to a statement, Argonaut has been successful in working with Renewable Heat & Power (RHP), the owners of PEA, which included management buy-back of the plant, off-take agreements and finding a strategic funding partner.
RHP’s funding partner is Engie Energy Management (formerly known as GDF Suez), a France-headed multinational energy utility 40 percent owned by the French Government and one of the world’s largest energy companies. Engie has substantial energy assets in Australia including the Hazelwood and Loy Yang B power stations in Victoria, Pelican Point Power station in SA and the Kwinana Cogeneration plant in WA.
RHP will use the AU$7 million in convertible note funding to restart the existing plant, which is expected to be completed by June 2017 with commercial production estimated to begin in the third quarter of 2017. In addition, the funding will be used for capital requirements for the plant’s operations, which include a ship loader and storage facility as well as working capital for the return to full operations.
