CHAR Technologies Ltd. announces $8M investment in energy facility

TORONTO — CHAR Technologies Ltd., involved in sustainable energy solutions, announces that CHAR Tech and The BMI Group, an industrial development company, have signed the formal agreements for the funding arrangement of CHAR Tech Thorold Renewable Energy Facility. As part of the agreements, BMI has made an $8 million project-level equity investment directly into the CHAR Tech Thorold Renewable Energy Facility, resulting in 50/50 ownership of the facility between CHAR Tech and BMI.

Pursuant to the Funding Arrangement, CHAR Tech has entered into definitive transaction agreements to effect the Funding Arrangement including a limited partnership agreement, a general partner unanimous shareholder agreement and contribution agreements. CHAR Tech’s contribution to the Thorold Project includes construction in progress and ongoing procurement activities, a use of technology licence, as well as expected and ongoing CHAR Tech engineering and project management labour hours and fees.

Phase 1 of the project, which will enable commercial biocarbon production, now has funding commitments in place for the required project-level equity. CHAR Tech and BMI are reportedly targeting a buildout and transition to full Phase 1 operations in Q4 2025. BMI’s $8 million contribution to the Thorold Project will be disbursed in monthly tranches to ensure the Thorold Project is operating with a positive cashflow, with all contributions to be made by December 31st, 2025.

Phase 2 of the project, which will enable Renewable Natural Gas (RNG) production, will try to leverage the Phase 1 equity components in place to pursue project level non-recourse debt financing, which BMI and CHAR Tech are pursuing. Securing a debt package by Q4 2025 would position CHAR Tech and BMI to target Phase 2 RNG commissioning towards the end of Q3, 2026.

Andrew White, CEO of CHAR Tech, stated: “We’re excited to give shareholders a clear timeline as we advance the Thorold project, with Phase 1 equity lined-up and a path in place toward RNG production in Phase 2. Thorold is just the start of what we believe will be a much larger platform for renewable energy development as we’re actively exploring additional opportunities across the BMI portfolio, including Bioveld North and the revitalization of the former Espanola pulp and paper mill.”

Paul Veldman, CEO of The BMI Group, commented: “We identified the biomass-to-energy value chain as a high-growth opportunity in Canada, with CHAR Tech at the forefront. Our investment in CHAR Tech’s IP and process is a textbook opportunity to scale proven technology across our sites spanning Ontario and Quebec’s richest fibre baskets—turning wood waste into energy and carbon-critical applications for the heavy industries.”