Plantation Energy Australia signs first Asian export deal
A landmark, AU$70 million supply agreement has been signed between Plantation Energy Australia and the Japanese company, Mitsui & Co. This four-year deal will see the manufacture and export of Australian energy wood pellets to Mitsui, one of Japan’s largest and oldest trading companies.“Plantation Energy is delighted to conclude this off-take agreement with such a strong counterparty as Mitsui. 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,” said Bob Warburton, chairman of Plantation Energy.
“Mitsui believes wood pellets will play an increasing role in both Japan and the rest of Asia as companies take a portfolio approach to meeting their emission targets,” said Yukio Takebe of Mitsui. “The market for wood pellets in Japan is forecast to grow rapidly over the next five years and we are pleased to be able to turn to Australia to meet the market’s needs.”
Energy wood pellets, made using harvest residue from sustainably managed plantation forest, is a carbon neutral fuel source used widely throughout Europe. Global demand for pellets is expected to reach 30 million tonnes in 2015, up from just over 12 million tonnes in 2009.