$15.M deals sending wood pellets to EU
Viridis Energy has secured an off-take agreement with an un-named BC wood pellet company to serve renewable energy markets in the European Union.
VANCOUVER: Viridis Energy Inc. has secured an off-take agreement with an un-named BC wood pellet company to serve renewable energy markets in the European Union (EU).
Viridis, a Vancouver-based clean tech manufacturer of biomass fuel, said the $15.5 million agreement calls for 166,000 tonnes of wood pellets through 2014 for export to Europe. The pellets will be supplied through its Okanagan Pellet Co. in Kelowna, BC. A minimum of 22,000 tonnes of pellets will be supplied this year and 48,000 tonnes each in 2012-2014.
The company said wood pellet exports from North America to Europe have doubled over the last two years totalling 1.6 million tons last year. Canada shipped 1 million tons of the total, according to the North American Wood Fiber Review.
The EU is requiring that as of 2020, at least 20% of total energy consumption should be supplied by renewable energy resources.
Viridis Energy operates Cypress Pacific Marketing and Okanagan Pellet Co.