On June 27, Canadian pellet producer Pinnacle Renewable Holdings Inc. announced that it has entered into two new long-term, take-or-pay off-take contracts with customers in South Korea and Japan.
The contract in South Korea is with CGN Daesan Power Co. Ltd., a subsidiary of CGN New Energy Holdings Co. Ltd. Under the contract Pinnacle will supply Daesan with 315,000 metric tons per year of industrial wood pellets, beginning in 2021. The pellet will be used to fuel a biomass power generation plant located in South Korea.
The new contract in Japan is Pinnacle’s second with Toyota Tsucho Corp. Under the contract, Pinnacle will supply 170,000 metric tons per year of industrial wood pellets to Toyota Tsucho beginning in 2021. The pellet will be used by Kanda Biomass Energy K.K. in a biomass power plant in Kanda, Fukuoka Prefecture, Japan.
In a statement, Pinnacle said that in line with the rapid growth of the company’s backlog, it is continuing to evaluate and develop opportunities to add incremental production capacity.