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Follow The Taxpayer Money

The Federal Government through Natural Resources Canada contributed $14.4 million - this has been reported to be applied to start up costs. including road improvements.

However, we are learning that a $48 million energy fund by the BC Provincial Government may be in part pledged to this project. In October, Natural Resources Canada removed PR for their portion of funds on their website and posted news citing an Impact Assessment Review underway to determine project outcome (while funding announcements remain on Financial Post, Andion website and other sources).

The construction cost of the plant is $36.5 million which is contributed by a collective of investors and the Business Development Bank of Canada. Andion’s exact cash contribution is unknown but we do know they will not be using all of the $270 million raised by Spring Lane Capital. There are bigger plans in the works there.

The operating costs are really the interesting part because Andion/SFN will gross an average of $12 million annually on this plant. With all the risk, investment and struggle surrounding this project - a modest $12 milion is garnered each year.

Notably, this revenue is essentially tax payer money from the sale of natural gas to Fortis and the tipping fees from the pick up of waste from restaurants, grocery stores and large apartment buildings. What we don’t know is if Metro Vancouver will be paying them to remove waste from municipalities other than Vancouver (now that Vancouver has the Delta Landfill RNG). They will also sell fertilizer to the farming industry.

The health care costs are a huge variable. We based our assumptions on a modest projection that 1:4 residents living in the 5km radius will suffer from respiratory illness (emissions plume is likely to be 5 - 10km - but let’s just be conservative). This would no doubt double the cost of health care for 7,800 -9000 residents at a rate of $8800 annually. Some illnesses will be more severe and some less. This doubling assumption accounts for a modest average. We have data to support this argument based on increased hospital ER visits in communities with biogas plants.

Cost to our environment. This is priceless, but you might be surprised to know there is a cost here. Government of Canada has some of the most expensive environmental clean ups in the world to manage from fall out of the mining and oil and gas industry with billions allocated to the jobs. If we compare our fall out with the Esquimalt Harbour clean up for example we can reasonably expect a clean up here in White Rock to the tune of $165 million.

As you can see for a Canadian tax payer the math just doesn’t make sense but if you’re Andion of course it makes sense; someone else largely pays for this venture and Andion and partners profit sideways all the way through the process.

Note that some assumptions/projections were made however, the data is sourced from Andion’s own statements, website & government websites.

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