Under the terms of the contract, Pinnacle will supply 75,000 metric tons per annum of industrial wood pellets to Hanwa beginning in early 2022. The industrial wood pellets will be used by a biomass power generation 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, chief executive officer of Pinnacle. "With the addition of the fourth contract of 2018 with Japanese customers, our contracted backlog is now $3.8 billion."
Demand for industrial wood pellets in Japan is supported by the government's Feed-in Tariff system.