Village Farms International Inc. has closed a deal to buy Maxim Power Inc. in British Columbia, Canada, giving the greenhouse control of the power company that has been providing thermal heat for its growing operations in the area.
Final details of the $5.2 million deal are expected to be wrapped up by July 31, according to a news release from the Vancouver-based Village Farms. The power company’s name will change to VF Clean Energy Inc. when the final papers are signed.
When Village Farms officials announced the pending purchase in June, president and CEO Michael DeGiglio said in a news release there will be short- and long-term benefits for the greenhouse vegetable company and surrounding community.
“In the short term we believe enhancements to the co-gen facility will result in more electric generation as well as increased thermal heat for our own facilities,” DeGiglio said in the release. “This will increase our ability to further reduce our use of natural gas and decrease our carbon footprint. In the longer term, we plan to receive clean carbon dioxide from the co-generation facility.”
The power plant converts methane gas from the Vancouver landfill to create electricity that is sold to BC Hydro according to a long-term agreement.
“The ownership of the facility will enable the company to advance its high-tech sustainable growing technology both in the local area as well as provide invaluable experience to underpin future growth opportunities,” according to the July 17 news release.