Power Wood lands $60M investment for two Canadian black pellet factories
In Canada, Power Wood Holdings Ltd has agreed terms for an investment of up to C$84M into its development of two advanced black pellet production facilities in Northern Alberta. The Calgary-based biofuel business will receive its finance in multiple amounts from London-based private investment firm Chair Capital Ltd., as it reaches key project milestones towards the completion of each pellet facility to be developed by its subsidiary Power Wood Canada Corp.
Power Wood is in the pre-construction phase of building its first ‘Peace River’ steam explosion black pellet plant on land near La Crête in Mackenzie County, Alberta. In December (2025), the company agreed a C$1.1M land deal for installing a rail spur and its second ‘Hay Meadow’ facility on 175 acres close to the town of High Level. It will use Chair Capital’s funding to progress the development of each black pellet production facility towards full operative capacity, as well as to complete the construction of its rail spur for transporting offtake for export.
Each pellet plant will manufacture durable and waterproof, densified steam-treated biofuel pellets from waste stream wildfire-damaged deadwood, diseased trees and forest floor debris removed from ranges in North West Alberta. The facilities will have a combined annual output capacity of 700,000 tons. Power Wood has 10-year, take-or-pay offtake agreements in place with multiple Japanese energy companies that will use its biofuel as an energy-dense, drop-in replacement for coal. Steam-treated black pellets come with a negligible carbon footprint and can be burned in existing thermal power generating stations without material infrastructure modifications.
Category: Fuels
