CHAR Technologies Welcomes $8 Million Investment for Green Energy

Introduction to the Strategic Partnership

CHAR Technologies Ltd. (“CHAR Tech”, TSXV:YES), a prominent player in the sustainable energy sector, is excited to share its recent partnership with The BMI Group. This partnership aims to fortify the Thorold Renewable Energy Facility through an $8 million strategic investment by BMI, which establishes an equal ownership stake in this project.

Details of the Funding Arrangement

The formal agreements, encompassing a funding arrangement for the Thorold Renewable Energy Facility, represent a significant leap for CHAR Tech as it collaborates with BMI, a renowned leader in the industrial development arena. This equity investment enhances CHAR Tech's commitment to sustainable energy production and responsible waste management.

Investment Breakdown

BMI’s investment details the formation of comprehensive transaction agreements, which include a limited partnership agreement and a unanimous shareholder agreement, ensuring that CHAR Tech remains involved in all aspects of the Thorold Project.

The Phased Approach for Project Completion

The Thorold Project is set to launch its Phase 1, focusing on commercial biocarbon production, with continued funding commitments secured for the project's execution. The objective is to streamline construction and project management processes, ensuring a timely transition to operations by late 2025.

Positive Financial Outlook

BMI plans to distribute the $8 million investment across several months, enabling the Thorold Project to maintain a positive cash flow throughout the development stage. The final tranche of this funding is expected by the end of 2025.

Impact of BMI's Investment on the Local Economy

With BMI’s activation of over $200 million in investments within the Niagara area, the Thorold Project is expected to boost local economic activity significantly. Located within Bioveld, a recognized Innovation and Industrial Enterprise Hub, this initiative enhances collaboration among multiple sectors.

Historical Context of Support

This latest investment is in alignment with previous support received by CHAR Tech. In 2022, both the Canadian and Ontario governments provided combined funding exceeding $12 million for the development of the Thorold Project. Moreover, a previous equity investment from ArcelorMittal demonstrated robust market confidence in CHAR Tech’s potential.

Advancing Towards Renewable Natural Gas Production

As the project progresses, CHAR Tech is strategically positioning itself to move on to Phase 2, which will focus on the production of Renewable Natural Gas (“RNG”). This phase aims to attract additional funding in the form of non-recourse debt financing, allowing for an expansion of production capabilities.

Long-term Sustainability Goals

By securing long-term offtake agreements for RNG production, CHAR Tech aims to ensure the project's financial viability and further its commitment to sustainable energy solutions. The targeted timeline for commissioning Phase 2 is aligned with a projected completion towards the end of 2026.

Feedback from Leadership

CHAR Tech’s CEO Andrew White expressed enthusiasm regarding the project timeline, emphasizing the importance of shareholder confidence as they navigate towards RNG production. Similarly, BMI's CEO, Paul Veldman, highlighted the strategic potential of partnering with CHAR Tech to develop biomass-to-energy technologies, showcasing the significant economic impact expected from this research and development.

Engaging with the Business Community

In a conversation with Radius Research, both leaders discussed how this partnership is crucial in unlocking avenues for growth. The dialogue emphasized collaboration, innovative funding access, and the ongoing commitment to renewable energy development.

Conclusion: The Path Forward for CHAR Technologies

As CHAR Tech embraces this significant phase in its evolution, the collaborative endeavors with BMI are set to pave the way for future innovative projects. These investments are not only integral to the Thorold Project but also symbolize a crucial step towards sustainable energy solutions that reflect environmentally responsible practices.

Frequently Asked Questions

What is the CHAR Technologies Thorold Project?

The Thorold Project aims to produce renewable energy through biocarbon and Renewable Natural Gas (RNG) generation, supporting sustainable energy initiatives.

Who is The BMI Group?

The BMI Group is a leading industrial development company focused on transforming properties into multi-use developments across various sectors.

What is the timeline for the Thorold Project?

Phase 1 is expected to transition to full operations by late 2025, while Phase 2 aims for commissioning around the end of Q3 2026.

How will BMI’s investment impact the local economy?

BMI’s investment is projected to create local employment opportunities and stimulate economic growth in the Niagara area.

What is renewable natural gas (RNG)?

RNG is a type of biogas produced from organic materials that can be used as a clean energy source, often replacing conventional natural gas.

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