CHAR Technologies Secures $8 Million Investment for Growth
CHAR Technologies Secures Strategic Funding for Renewable Energy
CHAR Technologies Ltd. (TSXV: YES), recognized for its innovative solutions in sustainable energy, is excited to share significant news regarding its Thorold Renewable Energy Facility. The company has officially entered into binding agreements with the BMI Group, a notable player in industrial development, to mobilize an $8 million project-level equity investment into CHAR Tech's facility.
Details of the Investment Agreement
This strategic funding partnership marks a 50/50 ownership structure for the Thorold Project, reinforcing both organizations’ commitment to advancing biocarbon production. As per the agreements, CHAR Tech will contribute its ongoing construction efforts, technology licensing, management expertise, and engineering services to ensure the project’s successful implementation.
Investment Breakdown
The $8 million investment will be dispersed in monthly installments, allowing the Thorold Project to maintain robust cash flow operations. Both CHAR Tech and BMI are anticipating that these funds will facilitate a swift transition to full operational capabilities by the fourth quarter of 2025, focusing initially on biocarbon production as part of Phase 1 of the project.
Supporting Infrastructure and Funding
Bioveld, the location of the Thorold Project, serves as an Innovation and Industrial Enterprise Hub. This strategic area within Niagara has attracted more than $200 million in capital for various projects, which in turn have generated upwards of $2 billion in additional investments since 2023. Such a substantial financial landscape provides an optimistic backdrop for the ongoing development of the Thorold Renewable Energy Facility.
Prior Investments and Funding Support
In May 2025, the BMI Group made an earlier investment of $2 million in a private placement, becoming a significant shareholder in CHAR Tech with an 8% stake. These investments are part of a broader context, where previous government support totaling $12.8 million between the Canadian and Ontario governments has underpinned the Thorold Project's viability. Furthermore, CHAR Tech secured a corporate investment of $6.6 million from ArcelorMittal’s XCarb Innovation Fund the previous year, paving the way for an offtake agreement for its biocarbon supply.
Future Phases and Growth Prospects
The project earmarks Phase 2 to focus on producing Renewable Natural Gas (RNG). Here, the management team aims to leverage the foundational equity from Phase 1 to establish a secured non-recourse debt financing framework. Targeting a completion by Q4 2025 for its financial arrangements will facilitate the commissioning of RNG production by late Q3 2026, ensuring long-term viability through a 20-year offtake agreement with major gas utilities.
Leadership Statements
Andrew White, CEO of CHAR Tech, expressed enthusiasm regarding the partnership, stating, "We’re excited to give shareholders a clear timeline for the Thorold Project's advancement, with a focus on transitioning to RNG production in future phases." Similarly, Paul Veldman, CEO of the BMI Group, highlighted the potential of this biomass-to-energy initiative, noting their commitment to scaling proven sustainable solutions across their operational sites.
Building Strategic Partnerships
The collaboration between CHAR Technologies and the BMI Group represents an innovative step towards a more sustainable future in energy. This partnership not only signifies substantial financial backing but also emphasizes the vital role of integrating advanced technologies to drive renewable energy developments within Canada.
Frequently Asked Questions
What is the significance of the $8 million investment?
The investment enhances the Thorold Renewable Energy Facility and promotes CHAR Tech's transition to biocarbon production.
What are the phases of the Thorold Project?
The project includes Phase 1 focusing on biocarbon production and Phase 2 which aims to produce Renewable Natural Gas (RNG).
Who are the primary stakeholders in the Thorold Project?
CHAR Technologies and the BMI Group hold a 50/50 ownership in the Thorold Renewable Energy Facility.
What prior investments have been made in the Thorold Project?
The project received over $12.8 million from government funding and previous investments from the BMI Group and ArcelorMittal's XCarb Innovation Fund.
How does CHAR's technology align with sustainability goals?
CHAR Technologies utilizes advanced pyrolysis technology to convert wood waste into renewable energy, supporting the global transition to green energy solutions.
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