Pinnacle announces off-take contract with Japan-based Hanwa

Pinnacle Renewable Holdings Inc. announced May 22 that it has entered into a new long-term, take-or-pay off-take contract with Japan-based Hanwa Co. Ltd. Under the contract, Pinnacle will supply Hanwa with 75,000 metric tons of industrial wood pellets annually, beginning in 2022. The pellets will be used as fuel in a biomass power plant in Japan.

"We are pleased to enter into this long-term relationship with Hanwa, as it continues to contribute to Japan's strong commitment to decarbonization," said Robert McCurdy, CEO of Pinnacle, in a statement.

The Hanwa contract represents the fourth contract Pinnacle has signed with Japanese customers this year. During an investor call in early May, McCurdy discussed three contracts Pinnacle entered into during the first quarter with customers in Japan.

The first is an off-take contract with Ube for 70,000 metric tons per year of industrial wood pellets, with deliveries scheduled to begin in late 2019. The second is a long-term, take-or-pay contract that was signed on April 23 with Tsusho Corp., a group member of Toyota. Under the Tsusho contract, Pinnacle will supply 30,000 metric tons per year of industrial wood pellets beginning in late 2021 for use in a Japanese power generation plant. Also on April 23, Pinnacle entered into a long-term, take-or-pay contract with Sumitomo Corp. for the supply of 75,000 metric tons per year of industrial wood pellets beginning in late 2022 for use in a thermal power generation plant in Japan that is being converted to run on biomass.