$84M BOOST TO POWER WOOD PELLET PROJECT

BLACK pellet biofuel business Power Wood Holdings and its subsidiary Power Wood Canada Corp recently agreed an investment deal to fund the development of their forthcoming manufacturing facilities in Northern Alberta.

Power Wood agreed terms to receive a CA$84M finance package from leading London-based private investment firm Chair Capital Ltd last week.

The money will be injected into Power Wood’s pellet project in several sizeable amounts, beginning with a CA$42M cash injection to advance construction of the company’s ‘Peace River’ plant, near La Crête in Alberta.

The full amount being offered by venture capital company Chair Capital is based on the first verifiable valuation of Power Wood Holdings and its subsidiary' business, with each company agreeing its worth to be no less than CA$700M.

Chair Capital and Power Wood’s assessment equates to a current share value of CA$4.44.

Our Calgary-based biofuel business will access its capital raise as it reaches key project milestones towards the completion of two pellet facilities to be developed by its subsidiary Power Wood Canada Corp in Mackenzie County.

Power Wood Holdings Chief Executive Chairman David Peters welcomed Chair Capital’s involvement with his company’s projects, explaining that the organizations’ business relationship went “beyond investment”.

He said: “We have the industrial and commercial relationships to grow this business beyond these two facilities now in development. An investor of Chair Capital’s type, with its ability to assess other opportunities alongside us, is a material advantage.”

About the investment capital, he added: “Chair Capital’s commitment gives us the foundation we need to complete the funding stack for La Crête, and to progress High Level on schedule. They understood the asset quickly and engaged on the questions that matter, which are feedstock security, offtake quality and construction risk.”

Chair Capital’s investment comes against a backdrop of rising global investment in energy security. The IEA has forecast a five percent rise on 2025 outlay figures worldwide, with US$2.2T (65%) of US$3.4T spent on clean energy.

The global black pellets market was valued at US$298.6M in 2025 and is forecast to reach US$465.9M in 2026 and US$3.2B by 2040, according to Grand View Research.

Japan, where Power Wood has secured multiple offtake agreements with energy companies, is the world’s second largest importer of biofuel pellets. The country raised its year-on-year procurement of biofuel pellets by 35 percent to a record 8.4M tons in 2025.

Chair Capital’s Chief Executive Officer Darren Green said: “Energy has moved from being a sector to being the constraint on everything else, and the last 18 months have made security of supply a board-level question rather than a policy one.

“We are seeing that in our own pipeline, both in the volume of energy transition opportunities reaching us and in the appetite of institutional co-investors to underwrite alongside us.”

Chair Capital manages more than £345M in energy, data infrastructure, artificial intelligence and healthcare investments.

Mr Green described his company as “enthusiastic supporters of the black pellet market”.

“We intend to be a long-term investor,” he said, “Power Wood meets our valuation criteria on entry and, more importantly, it solves a real problem: coal-fired plants remain a valuable dispatchable generation asset at a time of sharply rising power demand.

“Black pellets are one of the few fuels that can substitute for coal in that installed base, and extend asset life without rebuilding it.

“The feedstock position is what distinguishes this asset because fire-damaged and diseased timber is a liability to the forest and a low-cost input to the plant.”

Power Wood Canada Corp 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.

In the pre-construction phase of building its first steam explosion black pellet plant on land near La Crête, the company agreed a CA$1.1M land deal for installing a rail spur and its second ‘Hay Meadow’ facility on 175 acres close to High Level, also in Alberta’s Mackenzie County.

The company will use Chair Capital’s funding to progress the development of each production facility towards a full operative combined capacity of 700,000 tons.

Chair Capital’s aggregate funding of CA$84M comprises an initial single sum of CA$42M, to be invested in Power Wood’s completion of its La Crête facility and rail spur, and up to a further CA$42M committed in tranches to support the development of Power Wood’s High Level plant.

The second and subsequent provisions are sequenced and to be triggered in line with verifiable progress milestones laid out in investment architecture by both companies.

To learn more about Power Wood Canada Corp’s advanced steam-treated black pellets, please use the contact details available on this website.