New Viridis Energy Port Partner Pumps $1M in Wood Pellet Business
July 11, 2014 | 3:48 pm CDT
Viridis Energy Cuts Q1 Loss by 31.4%

VANCOUVER, BC - Viridis Energy Inc. (CA:VRD) has inked another strategic agreement to benefit its Scotia Atlantic Biomass Company. Halifax Grain Elevator has agreed to invest up to $1 million in return for a maximum 20% equity ownership in the Viridis subsidiary.

Halifax Grain is located in the Port of Halifax. It operates 365 silos, some of which can be used for segregated storage of Scotia Atlantic Biomass' wood pellets destined for transport by cargo ship, tractor trailer or rail car. The bulk of the plant's product is exported to Europe.

"The Province of Nova Scotia is an ideal location for Viridis to continue its expansion on the east coast, given our valued relationship with Halifax Grain and the Port of Halifax, an advantageous shipping route to the rapidly growing market in Europe. Naturally, forming a strategic relationship with one of the principle operators at a key east bound port is fundamental to our tactical growth strategy," said Christopher Robertson, CEO of Viridis.

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In May, Viridis announced that Scotia Atlantic Biomass had been awarded a Capital Investment Incentive of up to $517,520 from the government of Nova Scotia. Viridis said it would use some of the incentive's proceeds to upgrade Scotia Atlantic production operations, including the purchase of a truck dumper with a 6,200-cubic-foot hopper and an Intalogix weigh scale to improve unloading of wood fiber that could help improve the amount of fiber delivered by each truck load by up to 40 percent.

Viridis purchased the Scotia Atlantic pellet mill in February 2012 and re-started ts operations last fall. The plant has an annual production capacity of 120,000 tons.

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