Key Takeaways:
CHAR Technologies Ltd. (TSXV:YES) has closed its acquisition of Elkem ASA’s (OSE:ELK) biocarbon business, securing a production facility in Québec and a five-year offtake agreement for 62,500 tonnes of biocarbon pellets.
The deal, announced by the company on April 20, gives CHAR control of the biocarbon pellet production facility in Saguenay, Québec, along with all associated hard assets and proprietary intellectual property related to the manufacturing process.
Specific financial terms of the asset purchase were not yet disclosed. The cornerstone of the transaction is a long-term offtake agreement committing Elkem to purchase 12,500 tonnes of biocarbon annually for five years, providing a stable revenue base for CHAR from the newly acquired plant.
For CHAR Tech, a specialist in sustainable biomass energy, the acquisition provides an immediate expansion of its production capabilities and enhances its technology portfolio. The deal secures a significant long-term customer in Elkem, a global leader in advanced silicon-based materials, which now divests these specific biocarbon assets as part of its own strategic alignment.
The transaction solidifies CHAR Tech’s position in the green energy supply chain, converting biomass into valuable biocarbon. The company's stock trades on the TSX Venture Exchange under the symbol YES.
This article is for informational purposes only and does not constitute investment advice.
