Merritt biomass power facility closes financing

July 28, 2014, Merritt, B.C. – A proposed biomass power plant
in Merritt is moving forward now that financing for the facility has been
confirmed.

According to a castanet.net news report, Merritt Green
Energy Limited Partnership has secured the $235 million investment for the new
plant, which will be located adjacent to the Tolko Industries yard.

The project has secured a 30-year power agreement with BC
Hydro, and is expected to be in commercial operation by the fall of 2016.

Five banks were sourced for $180 million in project debt
financing: Canadian Imperial Bank of Commerce, National Bank of Canada
(Administrative Agent), Bank of Tokyo-Mitsubishi UFJ (Coordinating Bank), Rabobank
and Natixis.

At capacity, it is expected that the Merritt Green Energy
Project will produce more than 285,000 MW of renewable energy, enough to power
40,000 homes annually, from 200,000bdt of biomass.