Pinnacle Renewable Holdings has entered into another long-term contract to supply wood pellets to a Japanese firm.
Under the terms of the contract with Hanwa, a large, diversified trading company in Japan, Pinnacle will supply 75,000 metric tons a year of industrial wood pellets starting in early 2022.
The wood pellets will be used by a Japanese biomass power generation plant.
“We are pleased to enter into this long-term relationship with Hanwa, as it continues to contribute to Japan’s strong commitment to decarbonization,” said Robert McCurdy, Chief Executive Officer of Pinnacle. “With the addition of the fourth contract of 2018 with Japanese customers, our contracted backlog is now $3.8 billion.”
Pinnacle says demand for industrial wood pellets in Japan is supported by the government’s Feed-in Tariff system.
In April, Pinnacle announced a long-term, take-or-pay off-take contract with Ube Industries Ltd. to supply 70,000 metric tons per year of industrial wood pellets to the Japanese firm beginning in late 2019.
