Viridis Energy Inc. of Vancouver, B.C., has announced that due to recent structural concerns at its Okanagan Pellet Company (OPC) plant and a combination of factors, including the increased capital investment necessary to restart wood pellet production at that location, it has decided to cease operations at its West Kelowna, British Columbia plant.
Despite substantial upgrades over the past ten months, addressing additional requirements from local authorities regarding dust management, together with the recently discovered structural challenges of the building, would require significant additional capital outlays in order to continue to operating safely.
The company has determined that such expenditures are not economically feasible in the current market environment.
The OPC plant upgrades were intended to address new regulatory requirements for safe storage and management of wood pellets and ensure the plant complies with National Fire Protection Association and BC Fire Safety code.
Viridis will work with OPC’s creditors to determine the best course of action, including, but not limited to, the potential sale or joint venture of OPC, a sale or liquidation of those related assets, or the relocation of that facility in its entirety.