Mitsubishi Corporation and Weyerhaeuser Company have announced that the two companies signed a Strategic Memorandum of Understanding (MOU) to explore the possibilities of collaborating in the biomass-to-energy business reports Friday Off Cuts.The companies are specifically interested in assessing the feasibility of jointly investing in and operating a commercial-scale bio-pellet production facility in the United States by 2011. Depending on the success of the joint feasibility study, more facilities could follow in addition to the initial production facility, in aspiration to become a world class bio-pellet producer. The bio-pellets will be produced using wood based biomass, targeted from U.S.-sourced sustainably managed forest resources or by-products and sold to utilities and industrial users for energy production.
The agreement signals the belief of both companies that there are existing and emerging opportunities in an expanding bio-energy market. The MOU brings together two industry leaders and leverages the strengths of both companies: Weyerhaeuser’s capacity to produce renewable biomass at scale from its sustainably managed forests and Mitsubishi Corporation’s worldwide network and experience in the energy sector and bio-pellet manufacturing business. Mitsubishi Corporation currently operates two bio-pellet facilities in Japan and is also actively involved in the management of Vis Nova Trading GmbH, a major producer of bio-pellets in Germany.