Viridis signs $15.5 deal

Canada-based energy infrastructure fund Viridis Energy has signed an off-take agreement worth over $15 million (€10.5 million) that will see it supply wood pellets to a key pellet manufacturer in British Columbia.

As part of the deal, worth $15.5 million, Viridis will supply at least 22,000 tonnes of pellets that will be shipped to Europe throughout 2011. After this year the figure will rise by 48,000 tonnes annually. By 2014, 166,000 tonnes of pellets will be required for export to Europe.

'The pace at which society is moving towards economical, renewable energy sources is gaining momentum and the most reliable of renewable biomass, the demand for wood pellets in growing,' says Chris Robertson, CEO of Viridis.

Recent studies have found that wood pellet exports from North America to Europe reached 1.6 million tonnes in 2010, having almost doubled within the last two years.

It is expected that the new deal will earn Viridis $2 million in 2011, before increasing to $4.5 million a year between 2012 and 2014.

Viridis has reportedly already started exporting its wood pellets.