NEWS RELEASE · 20th December 2011
The Province of BC is supporting the pyrolysis plant in Kitimat being built by PYTRADE CANADA through grants from the ICE Fund program and has committed $1,000,000 for the completion of this project. A Contribution Agreement was successfully negotiated and all parties are expecting a signature from the Deputy Minister, Ministry of Energy within the next few days. The first grant payment according to an agreed payment schedule is expected right after the signature.
The ICE Fund was created in 2007 to encourage the development of new sources of clean energy and technologies to help support local economies and livelihoods in communities across B.C. PYTBADE is very grateful for the financial support from the Government and has decided to hand over the completed pyrolysis plant to The Province BC after 10 years. Our business model underlines our leadership in ethically responsible and environmentally friendly business practices together with creating jobs and offering Education and Technology Transfer.
The basic model we're offering is commonly known as "BOOT" (Build-Own-Operate-Transfer). Options to create the suitable structures are a Special Crown Agency or a Foundation with direct involvement of the Public, First Nations and Academia. The future proceeds from our plant will support developments in BC's renewable energy industry. Besides conventional BOOT structures whereby different parties (Government Agencies, Sponsor, Contractor, Operator, Financier) participate at the beginning of the project phase, we will offer a model whereby PYTRADE carries all the risk associated with the project. The recipient will take over with a 10 years of history of successful operation.
We invite Premier Christy Clark, Minister of Energy, Rich Coleman and ICE Fund representatives to work with us and define a framework. The first draft documents should be available as early as January 2012.
We hope that our model and initiative will become a standard practice in public funding and grant programs and that more project sponsors will take responsibility to give back.
What exactly is the business case for this ?
Comment by DJB on 23rd December 2011
My understanding is they use hog fuel / wood chips to supply the operation. With Eurocan closed , and no operating sawmills in the area,what would they use for their fiber supply? I agree with Apocalypse , this sounds like a tax payer supported boondoggle.
sounds to me like...
Comment by Apocalypse Now on 20th December 2011
It sounds to me from the information i have read on this company that it is in the business of creating carbon credits. I am not sold on this .Tax payers money to fund a project where pytrade gets all the money for the credits at taxpayers expense.Just a thought.