The Australian Forest Products Association (AFPA) congratulates Altus Renewables and Mitsui on their new partnership in production of renewable wood pellets for use in power stations, Chief Executive Officer of AFPA, Mr Ross Hampton said today.
Altus and Mitsui have entered into a new long-term wood pellet offtake agreement in relation to Altus’ Tuan wood pellet production facility located near Maryborough in Queensland. Both companies will also explore construction of a new production facility in Australia’s Green Triangle region.
The 10-year sale and purchase agreement will mean the export of one million metric tonnes of industrial wood pellets, sourced from sustainably managed fibre residues, through the Port of Bundaberg to the Japanese power market to reduce emissions.
Mitsui has also provided Altus with a finance facility that would allow the company to achieve an annual production of 125,000 metric tonnes. Both companies have also signed a memorandum of understanding to conduct a feasibility study into the creation of a 500,000 metric tonne wood pellet production facility in the Green Triangle region of Victoria and South Australia.
“This is another excellent development for Australia’s forest industries. Congratulations to Altus Renewables for forging this relationship with Mitsui and looking to capitalise on growing demand from Japan,” Mr Hampton said.
“Exploring the feasibility of another facility in the Green Triangle is also excellent and will add to the already high strategic value of the region,” Mr Hampton concluded.