Pinnacle Renewable Energy has signed two long-term, take-or-pay offtake contracts with customers in Japan and South Korea, for the supply of industrial wood pellets.
In Japan, Pinnacle has extended an existing contract with Mitsubishi, under which Pinnacle will supply 110,000-120,000 metric tons per annum (MTPA) of industrial wood pellets from 2021.
In South Korea, a new contract with GS Global, the first dedicated biomass independent power producer in the country, will see Pinnacle supply 100,000 MTPA of wood pellets to GS Global from 2022.
"These new contracts represent the strengthening of our relationship with Mitsubishi and expansion of our business in the Asian market, with the relationship with GS marking our third contract in South Korea," said Rob McCurdy, CEO of Pinnacle. "With the growth of our contracted back-log and diversification of our counterparties, we are continuing to evaluate and develop further opportunities to add incremental production capacity, supported by our recently expanded credit facility."
According to Pinnacle, Japan is targeting 3.7-4.6% renewable energy from biomass, of 20 million MTPA in pellet equivalent terms. South Korea has additionally set targets, seeking to achieve 10% renewable generation by 2023.