Canadian bioenergy project stutters as it seeks new funding
A bioenergy project in British Columbia has had to be temporarily delayed while developer Conifex Timber secures long-term financing.
Conifex claims the project is around 30% complete to date but, in order to further its continued development and secure satisfactory long-term financing, it will suspend installation and construction activities.
‘While it is disappointing to have to reduce expenditures over the next few months, we concluded that it was more important to have the best possible financing in place to ensure that an optimal value is realised for us and its shareholders over the 20-year term of our energy purchase agreement with B.C. Hydro,’ says Conifex CEO Ken Shields. ‘We remain optimistic that we will identify appropriate financing for the bioenergy project.’
Negotiations with one potential lender that was seeking an equity interest in the project have been recently terminated.
The commercial operation date for the project is scheduled for the autumn of 2013 but Conifex claims this may have to change if delays go on for longer than expected.