Power Wood Agrees Terms for Investment of up to CAD 84M from Chair Capital

Chair Capital announces that Power Wood Holdings Ltd, the developer of two advanced black pellet biofuel production facilities in Northern Alberta, has agreed terms for an investment of up to CAD 84M from Chair Capital, subject to contract and to completion of definitive documentation. The investment positions Power Wood to convert fire-damaged Canadian timber into a coal-substitute fuel for industrial and power generation offtakers.

Power Wood produces advanced black pellets, a densified solid biofuel with high energy value and hydrophobic quality, manufactured by hydrothermal steam explosion to replace coal in existing thermal generation and related infrastructure without material modification. The Company's first facility, at La Crête, Peace River, in Mackenzie County, is designed for 350,000 tonnes of annual output. Feedstock is drawn exclusively from native dead fire-damaged timber, diseased trees and forest floor debris, a residue stream with no competing commercial use and a materially lower delivered cost than roundwood. A second facility at High Level, Alberta, is planned as a secondary deployment. The Company secured a land acquisition in December and is progressing permissions for the development of a rail spur to connect to overland export routes.

Chair Capital's aggregate commitment is CAD 84M, comprising CAD 42M subscribed in a single tranche at financial close in respect of the La Crête facility, and up to a further CAD 42M available in tranches in respect of the High Level facility, targeted across 2027 and 2028. Deployment is sequenced against gateway milestones under Chair Capital's Investment Architecture, which ties the release of capital to verifiable development progress rather than to calendar dates. The investments are triggered by project milestones at the La Crête and High Level facilities. The parties' working reference is an equity value of CAD 700M, equivalent to CAD 4.44 per share. The commitment is subject to customary conditions precedent, including evidence of committed third party construction financing.

The commitment is made against a market backdrop in which energy security has displaced cost as the primary determinant of capital allocation. The International Energy Agency expects global energy investment to reach USD 3.4 trillion in 2026, a rise of 5% on 2025, of which approximately USD 2.2 trillion is directed to clean energy against USD 1.2 trillion to oil, natural gas and coal. Disruption to Middle East supply routes has, in the IEA's assessment, made diversification and security of supply durable features of investment planning irrespective of how quickly present conflicts resolve. Within that shift, black pellets occupy a specific position: a dispatchable, storable, drop-in low carbon fuel that extends the operating life of valuable existing generation assets at a time of rising electricity demand. The global black pellets market was valued at USD 298.6M in 2025 and is forecast to reach USD 465.9M in 2026 and USD 3.2 billion by 2040.

Offtake demand for the La Crête facility is anticipated to come principally from Japan, the second largest wood pellet importer globally, where imports rose 35% in 2025 to a record 8.64 million tonnes and Canadian supply accounted for approximately 1.29 million tonnes. Japanese utilities are progressing black pellet co-firing at existing coal-fired stations, where the steam explosion biofuel can substitute for a material share of coal throughput using installed handling and milling equipment. Execution of a binding offtake agreement covering the annual capacity of the La Crête facility, with a creditworthy counterparty and over a term of not less than 10 years, is a gateway milestone under the term sheet. The two facilities together are expected to support up to 300 direct jobs.

Darren Green, Chief Executive Officer at Chair Capital, commented:

"Energy has moved from being a sector to being the constraint on everything else, and the last 18 months have made security of supply a board-level question rather than a policy one. We are seeing that in our own pipeline, both in the volume of energy transition opportunities reaching us and in the appetite of institutional co-investors to underwrite alongside us. Power Wood meets our valuation criteria on entry and, more importantly, it solves a real problem: coal-fired plant remains a valuable dispatchable generation asset at a time of sharply rising power demand, and black pellets are one of the few fuels that can substitute for coal in that installed base and extend asset life without rebuilding it. The feedstock position is what distinguishes this asset because fire-damaged and diseased timber is a liability to the forest and a low-cost input to the plant. We are enthusiastic supporters of the black pellet market, and we intend to be a long-term investor."

David Peters, Chairman and Chief Executive Officer of Power Wood, added:

"Chair Capital's commitment gives us the foundation we need to complete the funding stack for La Crête and to progress High Level on schedule. However, their ability to help us design, fund and build Power Wood goes beyond investment alone and that was clear from day one. They understood the asset quickly and engaged on the questions that matter, which are feedstock security, offtake quality and construction risk. We have the industrial and commercial relationships to grow this business beyond these two facilities now in development. An investor of Chair Capital's type, with its ability to assess other opportunities alongside us, is a material advantage."

Chair Capital and Power Wood expect to finalise definitive documentation in the coming weeks, following which the parties will confirm the deployment schedule against the construction programme for the La Crête facility.

About Chair Capital

Chair Capital is a private investment firm operating in London and Dubai. The firm invests in energy transition, data centres, AI, and MedTech, deploying £10M to £100M+ as principal capital alongside a structured Investment Architecture. Chair Capital's funding deployment is based around critical business milestones, de-risking the investment journey and positioning portfolio companies for premium valuations.

About Power Wood

Power Wood Holdings Ltd is a biofuel production business developing two advanced black pellet manufacturing facilities in Mackenzie County, Northern Alberta, Canada. The Company converts fire-damaged and diseased timber and forest floor debris into densified black pellets using the steam explosion process, producing a hydrophobic solid fuel that can be transported and combusted in existing coal handling and generation infrastructure. Its first facility, at La Crête, Peace River, is designed for 350,000 tonnes of annual output. A second facility at High Level, Alberta, is planned as a secondary deployment.

Media Contacts

Chair Capital

Email: press@chair.capital

Website: https://chair.capital

Power Wood

Email: jstones@powerwoodcanadacorp.com

Website: https://www.powerwoodcanadacorp.com

Forward-looking statements: This press release contains forward-looking statements relating to anticipated funding deployment, technology development, commercial milestones, customer engagement, and market opportunity. Such statements are based on current expectations and are subject to known and unknown risks, uncertainties, and assumptions, and actual outcomes may differ materially from those expressed or implied. Neither Chair Capital nor Power Wood undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. This release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.