PEA to supply Electrabel with wood pellets

Denham Capital Management LP-funded Plantation Energy Australia Pty. Ltd. (PEA), which has offices in Melbourne and Perth and operations in Western Australia and the country’s Green Triangle, has struck a three-year densified biomass fuel pellet supply deal with a Belgian company. PEA said that the deal with Electrabel NV, worth A$70 million (US$52.44 million), is the first of its kind in Australia and is an important step in the expansion of its business model in Australia and in increasing its capability to meet growing world demand. The pellets that PEA promised Electrabel are made from non-commercial plantation forest residues and will be shipped from Albany, Western Australia, where the first of several planned pellet manufacturing facilities is in operation. (May 6, 2009)