Convergen Energy secures new financing arrangement with BMO Bank of Montreal
Convergen Energy has secured a new multimillion-dollar financing arrangement with BMO Bank of Montreal. Under the terms of the facility, Convergen will have access to further working capital as it expands its renewable fuel pellets plant at Green Bay, Ohio, and also its combined heat and power (CHP) 20-Megawatt facility, L’Anse Warden Electric Company (LWEC), on the shore of Lake Superior in the Upper Peninsula of Michigan. Formerly Greenwood Fuels, Convergen was the Libra Group's first investment in the US renewable energy sector.
Business development plans for Convergen include consolidation of the vertical integration chain model. Since July 2017, its processing volumes have increased threefold. It is able to take industrial by-products otherwise destined for landfill, repurpose them as burn-ready fuel pellets, then sell these on to customers as well as burn them in the LWEC power plant. LWEC supplies electric power to the grid for the Upper Peninsula under a power purchase agreement for renewable energy, alongside providing steam and electricity to local business in the immediate vicinity in Michigan.
The multimillion-dollar facility with BMO Bank of Montreal will enable Convergen to continue investing in its infrastructure and manufacturing processes. This is also the first time the company has entered into an agreement with BMO and represents a further milestone in the development of its corporate partnerships and associates.
Ted Hansen, CEO of Convergen Energy, commented: “We welcome this new relationship with Bank of Montreal and are very happy to be working with them. The investment will strengthen our ongoing development and evolution as a combined fuels and power business.”