2022-02-10 02:53:11
Pacific BioEnergy Corporation (PacBio) in December 2021 announced that it had reached an agreement to assign some of its assets, including the wood pellet long-term sales contracts, to the Drax Group. Through the deal, Drax will get an additional 2.8 million tonnes of orders for sustainable biomass supply.
These contracts are for delivery between 2022 and the mid- 2030s, of which 0.3 Mt is for delivery in 2022. The total incremental revenues over the contract period are around $675 million. Drax aims to double sales of biomass to third parties to at least four Mt pa by 2030, developing its market presence in Asia and Europe, facilitated by the creation of new business development teams in Tokyo and London during 2022.
The PacBio wood pellet plant in Prince George, B.C., will permanently close this year, resulting in the loss of 55 direct jobs.
PacBio CEO John Stirling stated, “Our company has been battling several challenges for the past few years. Sawmill closures in the region have reduced the volume of available raw materials and increased their cost significantly. Forest fires, landslides, and floods have severely impacted our ability to transport our product by rail to the export terminal in North Vancouver. The impact has been a significant increase in operating costs. Our sales contracts have been sold to Pinnacle to mitigate the impact on our customers.”
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