Fully permitted, turnkey biomass cogeneration and treated wood recycling facility in Quebec, Canada. Following a strategic cessation of operations last year, this asset presents a rare, de-risked entry point for qualified strategic buyers, family offices, and private equity groups. The opportunity offers immediate access to established infrastructure, valuable environmental permits, and grid connectivity within the rapidly expanding North American renewable energy and ESG sectors.
The facility operated at the intersection of sustainable waste management and renewable energy, executing a rigorous 4R (Reduce, Reuse, Recycle, Recovery) operational model. By diverting post-consumption treated wood (e.g., railroad ties, utility poles, construction lumber) from landfills, the Company transformed environmental liabilities into valuable green energy and reusable materials. Operations were seamlessly integrated with a dedicated on-site cogeneration plant, ensuring zero-waste processing and maximum resource recovery.
This 5-year financial model provides an Unlevered Free Cash Flow (UFCF) baseline for evaluating the Quebec biomass cogeneration and treated wood recycling facility.
All figures are expressed in CAD ($) based on standard industry benchmarks for Canadian energy and waste-to-value operations.
1. Key Operating Assumptions
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Acquisition & Restart (Year 0 Outflow): $8,000,000 purchase price + $1,000,000 restart/overhaul CAPEX = $9,000,000.
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Operational Capacity:
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Nameplate Capacity: 9.75 MW
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Capacity Factor (~85%): 7,450 operating hours/year
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Net Power Output: ~72,600 MWh/year
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Revenue Drivers (Run-rate):
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Power Sales (PPA / Grid Interconnection): 72,600 MWh @ $85/MWh $\rightarrow$ $6.17M/year
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Tipping Fees (Wood Waste Processing): 90,000 tons @ $35/ton $\rightarrow$ $3.15M/year
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Carbon Offsets & Material Recovery: Conservative ESG baseline $\rightarrow$ $0.50M/year
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Total Full-Scale Revenue: $9.82M/year
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Operating Expenses (OPEX):
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Feedstock logistics, labor, O&M, insurance, and environmental compliance: ~$5.40M/year (~55% of revenue).
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Depreciation, Capex & Taxes:
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Combined Quebec/Federal Corporate Tax Rate: 26.5%.
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Sustaining CAPEX: $350k/year.
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Working Capital Changes ($\Delta$NWC): Normalized working capital cycle.
2. 5-Year Cash Flow Projection
Note: Year 1 incorporates an 80% capacity utilization ramp-up; Years 2–5 reflect full operational run-rate with a conservative 2% annual escalation.
| Financial Line Item ($M CAD) |
Year 0 |
Year 1 (Ramp-up) |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
| Total Revenue |
— |
$7.86 |
$9.82 |
$10.02 |
$10.22 |
$10.42 |
| Operating Expenses (OPEX) |
— |
($4.50) |
($5.40) |
($5.51) |
($5.62) |
($5.73) |
| EBITDA |
— |
$3.36 |
$4.42 |
$4.51 |
$4.60 |
$4.69 |
| Depreciation & Amortization (D&A) |
— |
($0.90) |
($0.90) |
($0.90) |
($0.90) |
($0.90) |
| EBIT |
— |
$2.46 |
$3.52 |
$3.61 |
$3.70 |
$3.79 |
| Income Tax (26.5%) |
— |
($0.65) |
($0.93) |
($0.96) |
($0.98) |
($1.00) |
| NOPAT |
— |
$1.81 |
$2.59 |
$2.65 |
$2.72 |
$2.79 |
| + D&A Add-back |
— |
+$0.90 |
+$0.90 |
+$0.90 |
+$0.90 |
+$0.90 |
| – Sustaining CAPEX |
— |
($0.30) |
($0.35) |
($0.35) |
($0.35) |
($0.35) |
| – $\Delta$ Net Working Capital |
— |
($0.25) |
($0.10) |
($0.05) |
($0.05) |
($0.05) |
| Initial Outlay |
($9.00) |
— |
— |
— |
— |
— |
| Unlevered Free Cash Flow (UFCF) |
($9.00) |
$2.16 |
$3.04 |
$3.15 |
$3.22 |
$3.29 |
Confidential & Indicative Only: This financial model and the accompanying projections are provided solely for illustrative and preliminary discussion purposes. The assumptions, estimates, cash flows, and return metrics (including IRR and Payback Period) contained herein are forward-looking statements based on theoretical market conditions, standard industry benchmarks, and preliminary data. They do not constitute an offer to buy or sell securities, a binding valuation, investment advice, or a commitment of financing.
Actual operational and financial performance may differ materially due to market fluctuations, regulatory changes, environmental liabilities, off-take agreement terms (e.g., PPA negotiations with Hydro-Québec), and unforeseen facility restart/maintenance costs. Prospective investors, lenders, and strategic buyers must conduct their own independent technical, legal, environmental, and financial due diligence before entering into any binding transaction.
