Altus Renewables Limited (‘Altus’) and Mitsui & Co., Ltd. have entered into a new long-term wood pellet offtake agreement in relation to Altus’ Tuan wood pellet production facility located near Maryborough, Queensland, Australia.
The 1 million metric ton, 10-year sale and purchase agreement, will see the export of 100,000 metric ton of industrial wood pellets per annum from the Port of Bundaberg to the Japanese power generation market.
Additionally, Mitsui has provided Altus with a finance facility that will enable the company to upgrade its Tuan wood pellet production facility to achieve an annual production of 125,000 metric ton.
The funds will also enable the company to complete the construction of a dedicated wood pellet storage and export facility at the Port of Bundaberg, including a new export conveyor linking Altus’ facility to Queensland Sugar Limited’s ship loading infrastructure.
Altus Renewables Managing Director and CEO Ian Sandeman welcomed the agreement with Mitsui.
“The long-term offtake and financing agreement will enable us to substantially scale up and respond to growing market demand from the Japanese market,” Mr Sandeman said.
Altus Renewables is an Australian wood pellet producer with its wood pellet plant located alongside the Hyne & Son sawmill at Tuan, near Maryborough, QLD. The company services international pellet markets in Europe and Asia through the Port of Bundaberg.