Char Tech cheers Lake Nipigon's facility licence

Executive Summary

• Char Technologies Ltd. announced that its partner, Lake Nipigon Forest Management Inc. (LNFMI), has secured a forest resource processing facility licence for its biohub near Hurkett, Ontario.
• This licence enables the operation of the biohub, which will serve as the primary feedstock supplier for Char Tech’s co-developed renewable energy facility.
• The partners have completed initial civil works and are targeting full construction commencement in 2026, with plans to secure financing through equity, grants, and non-recourse debt.

Key Details

• Licence Approval: LNFMI secured a forest resource processing facility licence, authorizing the construction and operations of the biohub forestry processing facility.
• Project Timeline: Initial civil works were completed in 2025; full construction of the renewable energy facility is targeted to commence in 2026.
• Feedstock Supply: The biohub will provide a long-term, on-site supply of forestry wood waste to the renewable energy facility.
• Financing Strategy: Char Tech and LNFMI will pursue full construction financing via a combination of project-level equity, non-repayable grants, and project-level non-recourse debt.
• Revenue Projections: Once fully operational, the facility is expected to generate annual revenues of more than $70 million from the sale of renewable fuels and biocarbon.
• Offtake Agreements: Revenue is supported by long-term offtake agreements.
• Stakeholders: The project involves four First Nations communities comprising LNFMI: Animbiigoo Zaagi'igan Anishinaabek, Bingwi Neyaashi Anishinaabek, Biinjitiwaabik Zaaging Anishinaabek, and Red Rock Indian Band.
• Government Support: The project received support from the Ontario government, including investments under the forest biomass program.

Notable Quotes

• Scot Rubin, CEO of LNFMI: "This is a generational milestone not just for LNFMI but for indigenous-led forestry and Ontario's clean energy future... By securing a facility licence, LNFMI has opened the door to new economic opportunities, sustainable forestry growth and the development of renewable energy infrastructure that will serve communities for decades to come."
• Andrew White, CEO of Char Tech: "The biohub represents a transformative step forward for our partnership with LNFMI and for Ontario's clean energy future... we are positioned to advance construction of a renewable energy facility in 2026 that will deliver meaningful economic benefits, support indigenous-led development, and help Ontario meet its advanced biofuels and decarbonization goals."
• Kevin Holland, Associate Minister of Forestry and Forest Products: "Our government is proud to support the development of this biohub with investments under our forest biomass program... Together, Lake Nipigon Forest Management Inc. and Char Technologies are putting forest biomass to work and creating new opportunities in forestry to build a stronger, more resilient forest sector."