Financing completed for the Port-Daniel cement plant in Quebec

Canada’s McInnis Cement has announced the completion of the financial structure for its cement plant in Gaspé. The National Bank of Canada, which is the sole bookrunner of the bank syndicate, has confirmed the $360 million loan for the Port-Daniel project. This will be added to the $500 million in equity provided by private and public investors, including the joint-venture formed by the Beaudier group and La Caisse de dépôt et placement du Québec, as well as the participation of Investissement Québec (IQ). The latter has also provided a $250 million commercial loan, for a total of $1.1 billion.

The Port-Daniel cement plant will comprise state-of-the-art technology for enhanced efficiency and environmental performance, including latest generation bag filters. According to McInnis Cement, the facility will comply with NESHAP 2015 standards, and will use up to 40% less fuel/t of cement than traditional cement plants through its utilisation of hydroelectric power. The project will take advantage of maritime transportation for fuel. The plant will burn petroleum coke but plans to partially substitute this with biomass from the Gaspé region over the coming years as part of its efforts to reduce GHG emissions.

3D simulation of the Port-Daniel cement plant (CNW Group/McInnis Cement).

The project is not subject to the Bureau d’audiences publiques sur l’environnement (BAPE) process. However, McInnis Cement has released documents related to the environmental assessment of the facility. The environmental impact study has been updated and is available on the company’s website. An information office opened in Port-Daniel in June 2013 to answer the questions of local citizens and workers.

“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.”

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/01082014/financing-completed-for-mcinnis-cement-plant-225/