Wood Pellet Maker Viridis Energy Posts $1.2M Loss in Q1

VANCOUVER, BC - Viridis Energy Inc. a manufacturer and distributor of wood pellets reported a first quarter net loss of $1.2 million as unseasonably warmer temperatures negatively impacted demand.

Viridis Energy purchased the Enligna wood pellet plant in Nova Scotia in February. Viridis Energy, which acquired Enligna's wood pellet manufacturing plant in February, posted Q1 revenues of $2.4 million compared to $2.7 million for the same period in 2011. Viridis said the domestic home heating business, which is generally higher margin business, represented 26% of total revenue, down from 52% during the same period last year.

Viridis said it is plans to resume production at the former Eligna wood pellet plant in Nova Scotia, which has been renamed Scotia Atlantic Company Ltd. The acquisition of the 110,000-ton capacity plant,  said to be the largest in Atlantic Canada, increased Viridis Energy's production capacity by more than 150 percent. T

"We have been working on many fronts to position Viridis' role in the growing alternative energy industry," said Christopher Robertson, CEO. "As commercial demand mounts, especially overseas, industrial users will seek long-term off-take commitments to ensure sufficient supply of wood pellets. While this development improves long-term planning, it also requires initiative to elevate production capacity and secure raw material sources to participate in the growth.

"Excluding acquisition costs, we have already begun investment in restoring Scotia Atlantic Biomass to operating condition. We have also begun staffing the facility, which we expect will initially have a team of 24. We are on schedule to start operations late in the second quarter and plan to be in full scale production by year-end," Robertson added.