Viridis Energy enters into C$15.5M agreement to supply minimum of 166,000 tonnes of wood pellets through 2014 for export to Europe from its Kelowna, British Columbia, facility
April 18, 2011
– Viridis Energy Inc. ("Viridis" or the "Company") (TSX-V: VRD) (OTCQX: VRDSF), a "Cleantech" manufacturer and distributor of alternative energy providing biomass fuel to global residential and industrial markets, announced today that it has entered into an off-take agreement with a major British Columbia-based wood pellet producer through which Viridis' Kelowna, BC facility (Okanagan Pellet Company) will supply a minimum 166,000 tonnes of wood pellets through 2014 for export to Europe. The agreement is valued at approximately $15.5 million. Viridis has commenced shipping.
Terms of the agreement calls for a minimum of 22,000 tonnes of wood pellets in 2011 and 48,000 tonnes each in 2012-2014. The wood pellets are shipped in bulk to the port, and then the pellets are exported to Europe. Wood pellet exports from North America to Europe have doubled over the last two years totaling 1.6 million tons in 2010; Canada shipped 1.0 million tons of the total, reports the North American Wood Fiber Review. The European Union has stated that by 2020, at least 20 percent of total energy consumption should be supplied by renewable energy resources.
Commenting on the agreement, Chris Robertson, Viridis' chief executive officer, said, "The pace at which society is moving towards economical, renewable energy sources is gaining momentum, and as the most reliable of renewable biomass, the demand for wood pellets is growing. This off-take agreement will generate approximately $2 million of additional revenue for Viridis in the current year and $4.5 million per year from 2012 through 2014." Mr. Robertson added, "Viridis' focus on quality and dependable, sustainable access to raw material, such as beetle-kill pine wood, is firmly establishing the company's brand as a key source of premium renewable energy products."
About Viridis Energy Inc. Viridis Energy Inc. (TSX-V: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass. Located in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing and Okanagan Pellet Company, two acquisitions in the wood pellet sector, thus providing the company with vertical integration for distribution and manufacturing.