Pinnacle Renewable Energy has entered into an extension of a long-term, take-or-pay off-take contract with Mitsubishi Corporation in Japan.
Under the terms of the extension, Pinnacle will supply 80,000-90,000 tonnes of per annum of industrial wood pellets to Mitsubishi, beginning in the first quarter of 2023. The pellets will be used by a biomass power generation facility in Japan.
Duncan Davies, CEO of Pinnacle, said: “We are excited to grow our business with our Asian customers. We have developed a special relationship with Japan and we share their strong commitment to decarbonisation and their replacement of fossil fuels with sustainable wood pellets.”
Wood pellet usage in Japan has continued to grow alongside the build-out of biomass generating capacity in the country, providing Pinnacle with a geographically advantaged opportunity to continue expanding in this market.