McInnis Cement’s Port Daniel cement plant completes its financing

Byrebecca3360

Updated Mon, 04 Aug 2014 11:28:25 GMT

Canada:  McInnis Cement has announced that the financial structure of its cement plant under construction in the Gaspé Region of Quebec has been completed.The National Bank of Canada, as the sole book-runner of the bank syndicate, has confirmed the availability of a US$329m loan for the project. This is in addition to the US$458m in equity from private and public investors, including the joint venture formed by Groupe Beaudier and La Caisse de dép?t et placement du Québec, as well as the participation of Investissement Québec (IQ). IQ has also provided a US$229m commercial loan, which brings the loan total to US$1.00bn.

"We are pleased that the project can be realised without any subsidy; we are also very proud to be able to complete, more than 30 years after it was imagined by local entrepreneurs, this visionary, ambitious and modern cement plant at the cutting edge of technology." said Christian Gagnon, CEO of McInnis Cement. "Construction has begun and the project is well under way. Moreover, the ecological footprint of this flagship project for the cement industry in Canada and across the world will be one of the lowest in the industry."

The plant will use up to 40% less fuel per tonne of cement than traditional cement plants due the use of hydroelectric power, reducing emissions of greenhouse gas. It will comply with the US standards set out in the National Emission Standards for Hazardous Air Pollutants (NESHAP 2015), which are more stringent than those presently applied in Quebec. For example, the NESHAP 2015 standard for particulate matter is 15 times lower than the current Quebec limit. The Port-Daniel cement plant will be the only one in Canada to comply with the NESHAP 2015 standards.

The plant will be equipped with state-of-the-art technology for improved environmental performance, including the latest generation of bag filters for improved efficiency. It will also utilise maritime transportation for fuel, further reducing greenhouse gas emissions. Initially, the plant will use petroleum coke as fuel, although this is set to change in due course.

"Over the coming years, we intend to further reduce greenhouse gas emissions by partly replacing the petroleum coke with biomass, which is available in the Gaspé region," said Gagnon. "This partial conversion to biomass is at the very heart of the concept of the cement plant."