German biofuels firm Choren seals feedstock pact

02 September 2009 20:46  [Source: ICIS news]

TORONTO (ICIS news)--German biofuels firm Choren Industries has agreed with German Pellets, Europe’s largest producer of wood pellets, to jointly develop wood biomass feedstocks, the companies said.

The objective was to meet an expected increase in demand for such feedstocks, which would play an important role in reaching the EU's targets for renewable energy.

Under the deal, Choren would be responsible for the production and supply of the wood biomass.

German Pellets, for its part, committed to buying up to 10,000 tonnes/year of the wood biomass as raw material for its pellets production. This off-take commitment provided the commercial justification to cultivate the wood biomass, the companies said.

“Our collaboration with German Pellets now opens up the opportunity to start the commercial production of woody crops immediately and present this production process to agriculture as an attractive supplement to traditional crops,” said Choren project manager Michael Weitz.

In an early phase, Choren and agricultural partners would plant some 1,000 hectares of short-rotation wood coppice near Wismar in Germany’s northeastern Mecklenburg state, the companies said.

Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues
Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels
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