Viridis teams with global bioenergy company
Aug. 4, 2011 – Vancouver-based Viridis Energy has signed a strategic agreement with Abellon CleanEnergy, an integrated sustainable energy solutions provider.
August 4, 2011 By Viridis Energy
Aug. 4, 2011 – Vancouver-based Viridis
Energy has signed a strategic agreement with Abellon CleanEnergy, an integrated
sustainable energy solutions provider based in Ahmedabad, India, with
operations in the United States, Canada, Europe, UK, India, and Africa. The collaboration
covers three facets of the business: a procurement and supply agreement for
existing production; the proposed acquisition and development of a Monte Lake,
British Columbia, property; and a strategic investment in Viridis.
The companies have agreed to a five-year
off-take agreement requiring Viridis to provide a minimum of 30,000 tonnes of
wood pellets during the first twelve months beginning August 2011 and 40,000
tonnes annually during the remainder of the five-year agreement, for a total of
190,000 tonnes over the five-year contract. Abellon would receive exclusivity
to market Viridis wood pellets, agri-biofuels, and energy pellets to the
residential home heating and commercial markets in the UK and Europe (except
Italy, where Abellon would have exclusivity for all market segments, including
industrial power generation); Viridis has reserved the right to supply wood
pellets for industrial power generation in these regions. Abellon will also
have the first right of refusal for at least 50% of the output of all Viridis'
present and future projects in North America.
In addition, Viridis and Abellon will form
a joint venture company to pursue opportunities in alternative energy,
including the construction of a new wood pellet facility at Monte Lake Forest
Products in Monte Lake, British Columbia. Viridis signed an option to purchase
the Monte Lake property on May 27, 2010. Currently the companies are jointly
negotiating new terms with Monte Lake and expect to close on the acquisition
during the third quarter of 2011. Abellon will purchase all production of
renewable biofuels by facilities owned by the joint venture at a price based on
a predetermined profit margin.
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