The Rising Influence of Rising Affluence

[DewDiligence]

PCL inks another biomass supply contract:

http://finance.yahoo.com/news/plum-creek-enova-group-enter-200500375.html

Plum Creek Timber Company today announced it has entered into a 10-year fiber supply and services agreement with The Enova Group, an independent bioenergy firm headquartered in Atlanta, Ga. Plum Creek will deliver up to 3 million tons annually of sustainably-managed wood fiber to three pellet manufacturing locations that will be constructed in the Southeastern United States. Approximately 500,000 tons will originate from Plum Creek’s timberlands with the remaining 2.5 million tons to be sourced and delivered from third party landowners.

Enova will construct mills to convert wood fiber into pellets to serve global biomass markets. Pellet shipments are expected to begin in 2015.

PCL has a similar contract with a utility company in the UK. Biomass comprises a small portion of PCL’s overall business, but it’s incremental in the sense that the source material—tree tops and small limbs—would otherwise be wasted.