West Australian
Thursday 7/5/2009 Page: 48
Private equity-backed biomass producer Plantation Energy Australia has tapped into the growing European market for so-called green energy by securing a $70 million, three-year deal to supply its compressed biomass fuel pellets to a Belgium-based power company. Plantation Energy trumpeted the deal with Electrabel, a subsidiary of Europe's biggest power company, as the first of its kind in Australia.
The Perth-based company uses plantation timber residues to produce its "densified biomass pellets", which are burned in coal-fired power stations. Initial exports will be shipped from Albany where Plantation Energy has a pellet factory. "This agreement is an important first step as we look to expand our business model in Victoria and South Australia and increase our capability to meet growing world demand," Plantation Energy business development manager Jarrod Waring said.
"We also believe there is great potential to supply the domestic market over time as fuel pellets become more widely understood and accepted here in Australia. " The unlisted group is backed by US private equity giant Denham Capital, which took a majority stake last year via an $US80 million ($108 million) funding injection to help pay for construction of the Albany plant. It struck an offtake deal with listed MIS provider Great Southern earlier this year for the timber group's bluegum harvest residues, and is reportedly planning to build another pellet plant at Mt Gambier in South Australia.
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