Dec. 5, 2014, Vancouver – Export Development Canada (EDC) today announced CAD 2 M in financing for Vancouver's Diacarbon Energy Inc. (Diacarbon).
EDC is Canada's leading provider of financing, insurance and bonding for small Canadian companies of all sizes that do business outside of Canada.
This financing will allow Diacarbon to complete the development of a thermal biomass refinery in the interior of British Columbia. Once completed, this plant will convert wood waste into environmentally friendly, low carbon bio-fuels ready for distribution.
Diacarbon is a startup cleantech company producing wood pellets and developing torrefied biocoal, both of which can be used as a replacement for fossil coal. Since 2009, Diacarbon has focused its efforts on perfecting its biocoal product made from natural wood waste and now aims to demonstrate commercial scale production and distribution.
"EDC's investment provided the working capital that allowed us to grow our business and expand our technological base," said Jerry Ericsson, President and CEO of Diacarbon. "The export markets are very interested in both our pellets and biocoal over the near and long term."
"Cleantech is one of Canada's highest growth sectors and more than half of the industry's revenues come from exports," said Carl Burlock, Senior Vice-President, Financing and Investments, EDC.
"Diacarbon is an example of great innovation in clean energy technology and EDC is pleased to help close gaps in their financing," added Burlock.
Biocoal is a form of charcoal that is produced during the precise heating of wood waste through a process called torrefaction. Unlike wood pellets, biocoal is a direct replacement for fossil coal owing to a similar energy density and water resistance, allowing it to be used without any changes in existing industrial infrastructure. This makes biocoal more appealing than wood pellets to power generation utilities looking to replace their coal usage with a lower carbon alternative.
Clean technology is an area of corporate priority at EDC, with a dedicated team focused on understanding the industry's needs and delivering the right solutions to help Canadian cleantech companies start up and grow their business internationally.
"If your company works in cleantech and you're interested in hearing more about expanding to markets outside of Canada, EDC is here to help you," said Burlock.
About Diacarbon Energy
Diacarbon's business is to develop, own and operate waste woody biomass to biofuel production systems that are clean, efficient and economically viable sources of energy.
For more information about Diacarbon, visit www.diacarbon.com.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.