July 3, Chatham, ON - A five-year contract with Green Energy Group LLC representing an Italian company for biomass fuel pellets is launching Canadian Biofuel Inc. into the European market.
Ian Moncrieff, Canadian Biofuel Inc. president and CEO, said the contract, which starts July 15, 2012, will generate about $36 million in gross revenue for the Chatham, Ont. based company.
It will also expand the company's workforce.
“Fifteen people will be hired and the plant will add another 3 shifts when the production increases to a 24 hour-six-day-a-week schedule to meet the demand for the Italian contract,” said Moncrieff.
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Canadian Biofuel's Ian Moncrieff at the company's raw fibre storage building.
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The Italian contract is already paying dividends for the company.
“We are in serious contract discussions with a second company from Italy,” said Moncrieff. “The increasingly high export demand for biomass fuel to Europe has us planning for the future and the possibility of a second and third plant somewhere in southern Ontario.”
Canadian Biofuel's production facility, located on an eight-acre site in Springford, Ont., near Tillsonburg, south of Woodstock, produces biomass fuel pellets made from wood and the purpose grown energy crop miscanthus.
The company is presently working with government agencies and farm organizations to begin production of miscanthus crop in the next two-to-three years.
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