CHAR Tech Awarded $2.25 Million From Ontario to Accelerate Low-Carbon Biocarbon Pellet Commercialization

Executive Summary

• The Ontario government awarded CHAR Technologies Ltd. a non‑repayable reimbursement grant of $2.25 million under the Forest Biomass Program, covering 50% of eligible project costs for the Thorold Renewable Energy Facility.
• The funding will accelerate commercialization of biocarbon pellets and support expansion of the pellet production line, slated for completion in 2026 alongside Phase 2 construction (second High‑Temperature Pyrolysis kiln).
• CHAR Tech expects the upgraded facility to increase supply to Ontario steelmakers and enable export of Ontario‑made biocarbon to European markets.

Key Details

• Grant Amount: $2.25 million non‑repayable reimbursement (50% of eligible costs).
• Program: Ontario Forest Biomass Program, part of the Forest Biomass Action Plan.
• Purpose: Accelerate commercialization of biocarbon pellets as a renewable reductant for steelmaking and other heavy‑industry applications.
• Project Impact: Funding supports optimization of pellet durability, density, and handling characteristics; expands commercial pellet line.
• Timeline: Upgraded pellet line to be completed in 2026, coinciding with installation of the second High Temperature Pyrolysis (HTP) kiln (Phase 2).
• Market Outlook: Anticipated supply to Ontario steelmakers and export opportunities to European markets where demand for low‑carbon industrial fuels is growing.
• Government Quote: Kevin Holland, Associate Minister of Forestry and Forest Products highlighted the grant’s role in protecting forest sector jobs and advancing renewable fuels.
• CEO Quote: Andrew White emphasized that the investment strengthens the market for forest biomass, supports northern jobs, and positions CHAR Tech for increased local supply and export potential.

Notable Quotes

“We thank the Ontario government for its support to accelerate CHAR Tech’s work in advancing biocarbon pellets as a made‑in‑Ontario, drop‑in replacement for fossil carbon in steelmaking,” – Andrew White, CEO, CHAR Technologies Ltd.

All forward‑looking statements are subject to risks and uncertainties detailed in CHAR Tech’s MD&A dated January 28 2025.