Viridis pushes back pellet production to 2013
November 22, 2012
By Argus Media
November 22, 2012, London, UK — Canadian pellet producer Viridis Energy has pushed back the start-up date for its 110,000 t/yr Scotia Atlantic wood pellet production plant in Nova Scotia until the UK's revised renewable obligation (RO) subsidy scheme is implemented in April 2013, the company said.
Viridis acquired the plant in February and originally expected to have a first-quarter start-up, but plans have been delayed several times. The company considers the UK a major consumer of its production volumes from the plant.
“We plan to have our Scotia Atlantic Biomass pellet plant in full operation to address the increased demand for wood pellets when the RO plan takes effect in early 2013,” Viridis chief executive Christopher Robertson said.
Viridis is in discussions with UK end users, according to the company's chief financial officer Michele Rebiere.
“The [UK Department of Energy and Climate Change] decision will have a very favourable impact on the Canadian wood pellet industry,” he said. “In preparation for the April 2013 effective date, we are actively working on long-term offtake agreements with UK utilities that qualify for the subsidy.”
Viridis acquired Confluence Energy in March last year, a residential and industrial wood pellet producer with operations in the U.S. state of Colorado. And the company acquired two Canadian pellet producers in 2010 — Westwood Fibre Products and Monte Lake Forest Producers, and is expanding into the US as a currency hedge while it looks to grow its exports to northwest Europe.
The company began exporting pellets from its current operations to residential markets in Italy and Sweden in September last year. But the Scotia Atlantic plant will triple the company's output at full capacity.
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