have the capability of handling Panamax vessels, the largest ship class that Drax is targeting for pellet transport. OVERCOMING CHALLENGES MOVING FORWARD Early in 2014, it looked like there was a possibility that Rentech’s plans might get derailed. A group called Concerned Rentech Shareholders (CRS) delivered a release to the media in late March citing fiscal mismanagement and a lack of desire to address shareholder concerns. The group was launched by two capital partners and, combined, made up one of the larg-est shareholders. But less than two weeks later, the com-pany announced a settlement with CRS and, at the same time, introduced a sig-nificant new investor in Blackstone’s GSO Capital Partners. The new investment represented an additional $100 million in cash flow as well as $50 in refinancing for borrowing under margin loans. That capital announcement came within a few hours of the announcement that Rentech had acquired a 280,000m 3 wood supply in central Newfoundland, previously allotted to Abitibi-Boawa-ter’s mill in Grand Falls-Windsor. That acquisition has led to reports of several discussions that have taken place with provincial government officials to discuss potential pellet operations in that prov-ince. The Newfoundland-Labrador gov-ernment has already invested more than $10 million into Holson Forest Products pellet plant in Roddickton. However, that plant has been idled due to complications with storage and a lack of port facilities. There was word in May that company of-ficially had met with the St. Anthony Port Authority. St. Anthony is seen as a poten-tial location for the infrastructure needed to support pellet shipments to European customers. In May, the company also caught the industry by surprise when it announced the acquisition of New England Wood Pellet (NEWP). NEWP is the largest producer of wood pellet for U.S. pellet heating market, operating three pellet facilities with a capacity production of 240,000 tonnes per year. Combined with production from the two Canadian facili-ties, the addition of NEWP gives Rentech an overall production capacity of over 750,000 tonnes per year. In late October, the company officially announced that startup of the Atikokan facility had begun. Within a few weeks following thorough safety inspections, equipment testing and final commission-ing, pellet production will commence at the plant. Coupled with the completion of the pellet plant in Wawa, Rentech will be-come one of the largest pellet producers in Canada, and one of the few to have a footprint in both the Canadian and American production market. With most of those pellets already spoken for in the domestic and international markets, and a growing appetite for pellets in Europe, Rentech is poised to continue to establish its footprint in the industry. In just 18 months, Rentech has moved from a veritable unknown to a potential powerhouse in both the national, and the global, wood pellet industry. • WE FACE EXPLOSIONS EVERY DAY SO YOU DON’T HAVE TO. Don’t ignore potential hazards in your facility. Get tested! DEPEND ON FIKE for expert testing services and our full range of explosion protection solutions. To request a free consultation with a Fike Explosion Protection progessional, email us at: [email protected] 1-800-363-8116 www.fike.ca Canadian BIOMASS 21
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