Viridis Energy announces new merchants supply agreement

Viridis Merchants (VM), an aggregation and trading service of wood pellets and wholly owned subsidiary of wood pellet manufacturer Viridis Energy, has secured a contract with an existing supplier, for exclusive distribution of up to 18,000 tonnes of 100% Douglas fir pellets.

The contract value is over C$6 million (€4.4 million) during 2015.

VM launched its Okanagan Pellet Douglas Fir brand of premium pellets in early 2013 with an initial two rail cars in rotation. It then steadily increased sales to the dealer and distribution network, and now has between 25 and 30 rail cars in rotation. VM has exclusive rights to this brand and supply in the US northeast.

The contract is expected to produce between 14,000 and 18,000 tonnes for the year 2015 and is expected to renew in 2016.

'The Okanagan Douglas fir pellets are a superior quality in the heating market and retail for 15 to 20% more than premium pellets. We are pleased with the additional volume this contract has provided as we were unable to fulfil all the demand last year,' says Christopher Robertson, CEO.

This contract follows the renewal of another Viridis Merchants contract, extending it to March 2016, with a contract value of C$3.5 million.


SOURCE: Viridis Energy 

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