JV to develop second biomass power plant

Dalkia, an energy services provider and subsidiary of Veolia Environnement and Electricité de France (EDF), and the Canadian investment fund Fengate Capital Management are joining forces to develop what will be their second biomass power plant in Merritt, British Columbia, Canada.

This plant will consume 307,000 tonnes a year of biomass to generate 40MW of electricity. This production will be sold to the BC Hydro & Power Authority to supply to almost 40,000 homes in the area. Most of the feedstock for the plant will be sawmill waste, the supply of which will be managed by Dalkia and sourced from local sawmills.

Once operational, Dalkia says the plant will reduce CO2 emissions by around 95,000 tonnes a year.

To be designed and operated by Dalkia, the plant will be one of the largest in North America, according to the company, along with the Fort St. James facility which was also developed by the JV.

Under the design, finance, build, operate and maintain contract, Dalkia will provide the industrial management and maintenance of the facilities, as well as biomass supply and preparation services.

Fengate Capital Management will finance the project, together with a number of international and Canadian banks. Iberdrola Engineering & Construction was contracted to built the Fort St. James facility, ground on which broke at the end of last year.

'After Fort St. James, the Merritt biomass power plant will be one of the largest and most efficient in North America,' comments Antoine Frérot, chairman and CEO of Veolia. 'Our cooperation with Fengate Capital Management enables us to provide our customers with the best of our combined expertise: the design and operation of the most complex facilities on the one hand, and asset financing on the other.'