Ekman & Co. to market pellets for Viridis Energy subsidiary
Viridis Energy Inc. has announced that its wholly owned subsidiary, Scotia Atlantic Biomass Company, Ltd. has entered into an agreement with Ekman & Co AB, one of the world's oldest trading houses and wholesalers of forest products, under which Ekman will serve as Scotia's exclusive worldwide agent to market its entire wood pellet production. Under the terms of the agreement, Ekman will provide Scotia with the best possible sales opportunities at all times, including sales into different markets and market segments. The agreement covers an initial period of 24 months and an aggregate projected wood pellet production of up to 240,000 metric tons.
Viridis purchased Scotia, one of largest wood pellet manufacturer in Canada, in 2012. Scotia's operation sits on a 157 acre property, including a 22 acre wood lot. Scotia's production is expected to begin this month after several months of refurbishing and calibrating operations. Its proximity to shipping ports, in addition to the quality its product, positions Scotia as a key supplier of wood pellets to Europe where the demand for renewable energy sources, especially from commercial energy suppliers, is fast growing.
Ekman, founded in 1802 and based in Gothenburg, Sweden, specializes in all facets of the supply chain of forest related products, including sales, distribution, infrastructure support and financial services, such as insurance, trade financing, credit and interest rate risk and currency hedging. With revenue exceeding $2.3 billion and assets nearing $300 million, Ekman maintains 40 offices in 24 countries throughout Europe, the Middle East, North and South America, Asia and the Pacific Rim.
"The re-opening of the Scotia operations is a significant accomplishment towards achieving our goal of 1,000,000 metric ton capacity. We received outstanding cooperation and support from local Nova Scotia authorities and vendors to reach this point,” said Christopher Robertson, Viridis Energy's CEO. "Partnering with one of the world's foremost forestry industry experts for the off-take production of our Scotia operations has given us a high level of confidence in the growth prospects of the wood pellet market. Ekman has built an excellent reputation over its 210 year history as a 'go to' service provider and authority in the paper and pulp industries. We look forward to building a mutually beneficial relationship with such a value-added partner."
Jan Svensson, Ekman Group's chief executive officer, added, "Ekman prides itself for being able to identify opportunities in shifting global market conditions. Our focus on forest products has provided us with a dynamic medium through which we can react to evolutionary trends and use our organizational skills to add value to the supply chain. Working with seasoned, wood pellet professionals like Viridis is a natural progression for Ekman to further pioneer forest products as a sustainable, renewable resource."