PEA to supply pellets to power company

Perth, Australia-based biomass pellet producer Plantation Energy Australia reported it has struck a $70 million, three-year agreement with a Belgium-based power company to supply densified biomass fuel pellets for electricity generation. PEA said the deal with Electrabel NV is the first of its kind in Australia. The pellets, made from noncommercial plantation forest residues, will be shipped initially from Albany, Australia, where PEA has a pellet manufacturing facility. The company said it plans to increase its fuel pellet output to 1.65 million tons of pellets by 2012.

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