Pinnacle Renewable Energy Inc. has entered into two new long-term, take-or-pay off-take contracts with customers in Japan and South Korea, as the company says in the press release received by Lesprom Network.
The contract in Japan is an extension of an existing contract with Mitsubishi Corporation, a global integrated business enterprise in Japan. Under the terms of the contract, Pinnacle will supply 110,000 to 120,000 metric tons per annum (“MTPA”) of industrial wood pellets to Mitsubishi beginning in 2021.
The contract in South Korea is with GS Global Corporation (“GS”), a large diversified conglomerate in South Korea and the first dedicated biomass independent power producer in that country. Under the terms of the contract, Pinnacle will supply 100,000 MTPA of industrial wood pellets to GS beginning in 2022.
Japan is a supportive market for renewable energy, targeting 3.7% to 4.6% from biomass or 20 million MTPA in pellet equivalent terms, providing Pinnacle with a compelling opportunity to continue growing in this market. Like Japan, South Korea has also set specific targets for renewable generation, seeking to achieve 10% renewable generation by 2023.
Pinnacle Renewable Energy is a rapidly growing industrial wood pellet manufacturer. The company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.