The Rising Influence of Rising Affluence

[DewDiligence]

PCL inks wood-pellet-supply agreement with UK utility:

http://finance.yahoo.com/news/plum-creek-finalizes-long-term-212600967.html

Plum Creek will deliver up to 770,000 tons annually of sustainably-managed wood fiber to two U.S. pellet manufacturing locations during the course of the 10-year contract. Drax plans to construct two pellet mills, one each in Mississippi and Louisiana, to convert wood fiber into pellets for export to its power station in the United Kingdom. Deliveries are scheduled to begin in 2014.

The source material for these pellets is “junk wood” that would otherwise be discarded, so PCL’s getting value for it is pure upside.