Jan. 23, 2015, New York - PHI Group has signed an agreement with AG Materials to jointly set up a 200,000 MT wood pellet mill in Florida, U.S.A.
The joint venture company has been able to secure approximately 400,000 short tonnes of Southern Yellow Pine feedstock per year from a reliable industrial source for its proposed 15-acre wood pellet factory to be built in Live Oak, Suwannee County, about 85 miles from Jacksonville, Florida. The companies are currently in the process of negotiation to purchase the machinery and equipment for the plant, including PM30 pellet machines, manufactured by Austria-based Andritz Group.
The growing demand for wood pellets is primarily in Europe, Japan and Korea where carbon-reduction requirements are driving power utilities — particularly coal-fired power plants — to mix more wood pellets into their fuel supply. Under current targets, many European countries will be required to generate 35 per cent or more of their electrical power from renewable sources by 2020. Western European demand for wood pellets is expected to triple by that time. In addition, the residential markets in the U.S. and Europe will also require increasing amounts of wood pellets in the long run.
Henry Fahman, Chairman and CEO of PHI Group, Inc., said, “We are delighted to cooperate with AG Materials to set up the new wood pellet plant in Live Oak and believe the conditions are very favourable for our joint venture, thanks to the reliable source of feedstock, logistics, and foreseeable growing market demand.”
Timothy Garner, President of AG Materials, stated: “We consider this a very special and unique opportunity which can potentially create substantial long-term value for shareholders of both companies.”