Biomass ful pellet contract
Albany-based Plantation Energy has signed a landmark four-year supply agreement for its biomass fuel pellets with one of Japan’s largest and oldest trading companies.
The deal with Mitsui and Co is valued at more than $70 million and is the largest of its kind in Japan in both volume and value.
Plantation Energy chairman Bob Warburton said the deal secured the future of the company’s Down Road plant that would manufacture and export the clean renewable energy in the form of wood pellets.
“Not only does it secure the long-term future of Albany production, it also provides a secondary market to Plantation Energy’s existing European business and brings the company one step closer in its plan to expand production to facilities in Victoria and South Australia,” he said.
Asian markets have followed Europe in understanding the cost and logistical advantages of co-firing wood pellets to meet increased renewable energy targets.
“We believe Plantation Energy is well-positioned to meet this growing demand,” Mr Warburton said.
Plantation Energy uses plantation timber harvest residue to manufacture the high-energy wood pellets.
Plantation Energy’s first trial shipment was in September last year, with the Maple Pioneer taking Plantation Energy’s second shipment of 12,500 tonnes of biomass pellets to Europe.
A permanent storage area for biomass fuel pellets was built at Albany Port and can store 34,000 tonnes.
The manufacturing process involves reducing and compressing the raw material into cylindrical pellets about three centimetres long.
The biomass fuel pellets are used for industrial power generation and can be used alongside fossil fuels.
The company says there is no nett increase in the emission of carbon when biomass is used to produce energy.
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