CHAR Technologies Ltd. has announced its collaboration with the Lake Nipigon Forest Management Inc. (LNFMI), a First Nations co-operative, to build a renewable natural gas (RNG) and biocarbon facility in Northern Ontario.
The facility aims to convert 75,000 metric tons of wood waste and residuals annually, producing 500,000 gigajoules of RNG and 10,000 metric tons of biocarbon. The project is expected to start operations in 2025 and will provide long-term feedstock security for future opportunities to scale up production capacity.
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LNFMI is a forest management co-operative consisting of four local First Nation Communities that hold the Sustainable Forest License on the Lake Nipigon Forest. LNFMI is responsible for overseeing an annual harvest operation that supplies wood fiber across Northern Ontario. The partnership between CHAR and LNFMI aims to not only provide initial feedstock for the RNG and biocarbon facility but also ensure a steady supply of feedstock for future growth.
The project is expected to generate significant social, economic, and environmental benefits, including local employment opportunities and reducing dependency on petroleum-based fuels. The RNG produced by the facility will be marketed to natural gas utilities in the region, while the biocarbon will be targeted as a metallurgical coal replacement for Canadian steel manufacturers.
The project entity's voting rights would be split between LNFMI and CHAR on a 51%:49% basis, with each party appointing two directors. LNFMI will be responsible for sourcing and managing the delivery of feedstock, while CHAR will be responsible for sales and marketing of the RNG and biocarbon produced.
CHAR CEO, Andrew White, stated that the project comes at a perfect time as the Canadian government has called for increased production of Canadian biofuels in Budget 2023. He also expressed his pride in working with LNFMI and supporting Canada's green energy transition.
LNFMI President Theresa Nelson expressed excitement about the partnership, saying that it will provide employment opportunities for the four First Nation partners, a steady revenue stream for their communities' continual development, and an environmentally sustainable solution for the region.
