Pacific Bioenergy goes to great lengths to secure wood
-
Share on Facebook
-
Share on Twitter
- Copy Link
PRINCE GEORGE – Pacific Bioenergy recently announced new long-term contracts with Sumitomo Corporation, supplying 170,000 tonnes per year by 2020.
“These are big, breakthrough contracts here into a whole new market in Japan,” said Don Steele, CEO of Pacific Bioenergy. “The fundamental that they bring to us is, they top us up to about a billion dollars of business plus what we’ve got. And the nice thing about them is good pricing. And we’re going after material that is really surplus to the traditional forest industry.”
But the material that is “really surplus to the traditional forest industry” is tough to come by for all players in the sector, whether it’s traditional saw logs or pellets. Pacific Bioenergy, for example, has been placing ads in differ publications looking for fibre. Any fibre.
“We brought four million tonnes of customer buying to Prince George. We’re going to buy four and a half million of wood, one way or the other to fill those orders over the next ten, 15 years through the newspapers, from buying from others. It’s gonna be logs, it’s gonna be planer shavings. It’s gonna be waste product traditionally.”
Steele says times are changing in forestry and what needs to change with it is “attitude” about who are players in the world that is forestry.
