Varennes Cellulosic Ethanol LP seeks CCAA protection amid $180 million cost overruns

Company

Varennes Cellulosic Ethanol LP

Law Firm / Organization
Stikeman Elliott LLP

Company

7037163 Canada Inc. dba Recyclage Carbone Varennes

Law Firm / Organization
Stikeman Elliott LLP

Company

Ernst & Young Inc.

Law Firm / Organization
Fasken Martineau DuMoulin LLP

Company

IQ Equity

Law Firm / Organization
McCarthy Tétrault LLP

Bank

Royal Bank of Canada

Law Firm / Organization
Davies Ward Phillips & Vineberg LLP

Company

Groupe Promec

Law Firm / Organization
Lavery

Company

Proman Services Canada

Law Firm / Organization
Osler, Hoskin & Harcourt LLP

Company

Hydro Québec

Law Firm / Organization
Langlois Lawyers

Varennes Cellulosic Ethanol LP and Recyclage Carbone Varennes, a Varennes, Québec-based green energy supplier, obtained CCAA protection on March 11, 2025 due to financial challenges, including $180 million in cost overruns and a funding shortfall. The company was developing a $1.5 billion biofuels and electrolyzer plant, which is 75% and 45% complete, respectively. Financing came from government subsidies, secured debt (Canada Infrastructure Bank, IQ Financing), and equity partners (Proman Services Canada, Shell Canada, IQ Equity, Suncor Energy). Proman, disputing a December 2024 capital call, withdrew its $88 million commitment and initiated arbitration, with the company counterclaiming. The CCAA proceedings aim to run a Sales and Investment Solicitation Process (SISP), with Barclays Capital as financial advisor and EY as monitor.

Legal advisors include Stikeman Elliott (company), Fasken (monitor), McCarthy Tétrault (IQ), Davies (RBC), Lavery (Groupe Promec), Osler (Proman), and Langlois (Hydro Québec).

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Energy
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