Weyerhaeuser Co. said it’s signed a deal with Mitsubishi Corp. to explore possible future biomass-to-energy deals.
The Federal Way timber giant (NYSE: WY) and the Tokyo trading company said they’re interested in the feasibility of opening a commercial-scale production facility next year that would make bio-pellets from biomass (materials from trees and wood byproducts) and sell them to utilities and industrial users for energy production.
Mitsubishi currently operates two bio-pellet facilities in Japan and already has a deal to make bio-pellets in Germany.
“This opportunity has the potential to offer a significant renewable energy option here in North America and beyond while also creating green jobs in our operating communities. At the same time, we have the opportunity to enhance the value of Weyerhaeuser timberlands by converting residuals from our forest management activities into a new revenue stream,” said Dan Fulton, Weyerhaeuser CEO and president, in a statement.
Puget Sound Business Journal – http://seattle.bizjournals.com/seattle/stories/2010/02/01/daily16.html