Sweetman secures US$90m biomass supply deal
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Sweetman has closed a US$90m, 20-year biomass supply deal with Japan’s Sinanen Holdings that supports the country’s shift towards renewable energy.
Under the contract, the company will supply its US$14bn customer with 60,000 tonnes per annum of hardwood waste biomass for four planned 9.8 megawatt biomass electric power plants.
Biomass sourced from wood waste, which is seen as a form of baseload renewable energy, will initially be supplied to two of the four planned stations.
Sweetman Renewables chairman John Halkett said the two companies will work together to develop a continuous supply of biomass into Japan.
There’s potential for further contracts from Japan. Another Japanese developer with four biomass power stations at the design development stage has approached the company for potential supply.
The company is also advanced in developing a joint venture with a Singapore-based bioenergy company to generate a range of products from biomass for sale in Australia in the Hunter Valley region of New South Wales.
“This project will also involve the utilisation of wood waste, sawmill sourced wood chips and plantation and forest residues to produce syngas, biochar, nitrogen, carbon dioxide for commercial use and ammonia,” managing director Garry Millar said.
Agricultural grade biochar is a stable, carbon–rich form of charcoal that is applied to soil to improve soil fertility, water retention and crop productivity.
Adding biochar to soil permanently sequesters the carbon content and when added to livestock feed, improves animal health and helps mitigate their greenhouse gas emissions.
Millar added that the company was progressing discussions with existing producers of wood waste and biomass.
“We are focussing on material that is presently not utilised at all, or has limited, low-value markets, or is not recovered from forest and plantation operations during authorised tree harvesting operations,” he noted.
This article was developed in collaboration with Sweetman Renewables, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.