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Indef S.A. requested that CIFI structure up to US$ 32,500,000 in senior debt to refinance liabilities and provide working capital for its pellet plant located in the Province of Biobío, Chile—the country’s largest producer of pulp and timber and the second largest in Latin America after Brazil.
The facility is operational and produces between 125,000 and 375,000 tons per year of wood pellets, using residues from the local forestry industry as its main input. The project contributes to the circular economy by valorizing forestry by-products while stabilizing the supply of solid biofuel for the residential and industrial segments.
Chile faces high levels of air pollution, with a significant incidence of respiratory diseases associated with the use of wet firewood for residential heating. In line with the Residential Energy Transition Strategy (Ministry of Energy, 2020), replacing firewood with quality pellets is a key lever to reduce emissions and improve public health. The Eco Indef plant supports this goal by increasing the supply and quality of pellets, reducing particulate matter compared to traditional fuels, and generating direct and indirect employment in the local community.
The project is aligned with:
- The country’s Climate Ambition Alliance toward carbon neutrality and the reduction of GHG emissions.
- The Air Decontamination Plan of the Municipality of Los Ángeles, which promotes the replacement of firewood stoves with pellet stoves and the thermal retrofitting of homes.
The residential energy transition in the area has been supported by combined public and private investments of around US$ 50 million, which complement the effect of the financing requested from CIFI by ensuring the adoption, distribution, and efficient use of the biofuel.
