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Viridis Energy secures multi-year off-take

Apr. 20, 2011, Vancouver – Viridis Energy has entered into an off-take agreement through which its Okanagan Pellet Company will supply a minimum of 166,000 tonnes of wood pellets through 2014 for export to Europe.


April 20, 2011
By Viridis Energy

Apr. 20, 2011, Vancouver – Viridis Energy
has entered into an off-take agreement with a major British Columbia-based wood
pellet producer through which Viridis' Kelowna, British Columbia, facility
(Okanagan Pellet Company) will supply a minimum of 166,000 tonnes of wood pellets
through 2014 for export to Europe. The agreement is valued at approximately
$15.5 million. Viridis has commenced shipping.

Terms of the agreement call for a minimum
of 22,000 tonnes of wood pellets in 2011 and 48,000 tonnes each in 2012–2014.
The wood pellets are shipped in bulk to the port and then exported to Europe.
Wood pellet exports from North America to Europe have doubled over the last two
years, totalling 1.6 million tons in 2010; Canada shipped 1.0 million tons of
the total, reports the North American Wood Fiber Review. The European Union has
stated that by 2020, at least 20% of total energy consumption should be
supplied by renewable energy resources.

Commenting on the agreement, Chris
Robertson, Viridis' chief executive officer, says, "This off-take
agreement will generate approximately $2 million of additional revenue for
Viridis in the current year and $4.5 million/year from 2012 through 2014.
Viridis' focus on quality and dependable, sustainable access to raw material
such as beetle-killed pine wood is firmly establishing the company's brand as a
key source of premium renewable energy products."

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