Weyerhaeuser, Mitsubishi Explore Joint Bio-Pellet Plants Venture

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Weyerhaeuser, Federal Way, Wash., USA, announced this week that it has signed a Strategic Memorandum of Understanding (MOU) with Mitsubishi Corp. of Japan to explore the possibilities of collaborating in the biomass-to-energy business. The companies say they are specifically interested in assessing the feasibility of jointly investing in and operating a commercial-scale bio-pellet production facility in the U.S. by 2011. Depending on the success of the joint feasibility study, more facilities could follow in addition to the initial production facility. The bio-pellets will be produced using wood based biomass, targeted from U.S.-sourced sustainably managed forest resources or by-products and sold to utilities and industrial users for energy production.

The agreement brings together Weyerhaeuser's capacity to produce renewable biomass at scale from its sustainably managed forests and Mitsubishi's worldwide network and experience in the energy sector and bio-pellet manufacturing business. Mitsubishi currently operates two bio-pellet facilities in Japan and is also actively involved in the management of Vis Nova Trading, a producer of bio-pellets in Germany.

"Weyerhaeuser is committed to developing sustainable and renewable energy solutions for a carbon-constrained world," said Dan Fulton, Weyerhaeuser president and CEO. "This opportunity has the potential to offer a significant renewable energy option here in North America and beyond while also creating green jobs in our operating communities. At the same time, we have the opportunity to enhance the value of Weyerhaeuser timberlands by converting residuals from our forest management activities into a new revenue stream."

"This opportunity with Weyerhaeuser will enable us to establish a bio-pellet production facility in the U.S., adding to our existing investments in Japan and Europe and thereby creating a stable worldwide supply," Yorihiko Kojima, Mitsubishi president and CEO, said.