The companies are interested in assessing the feasibility of jointly investing in and operating a commercial-scale bio-pellet production facility in the US by 2011. Depending on the joint feasibility study, more facilities could follow in addition to the initial production facility.
The bio-pellets will be produced using wood based biomass, targeted from US-sourced sustainably managed forest resources or by-products and sold to utilities and industrial users for energy production. The agreement signals the belief of both companies that there are existing and emerging opportunities in an expanding bio-energy market.
Mitsubishi operates two bio-pellet facilities in Japan and is also involved in the management of Vis Nova Trading, a producer of bio-pellets in Germany.
Dan Fulton, preseident and CEO of Weyerhaeuser, said: “Weyerhaeuser is committed to developing sustainable and renewable energy solutions for a carbon-constrained world. This opportunity has the potential to offer a significant renewable energy option here in North America and beyond while also creating green jobs in our operating communities.
“At the same time, we have the opportunity to enhance the value of Weyerhaeuser timberlands by converting residuals from our forest management activities into a new revenue stream.”
