green and sustainable business

Big biomass supply contract for Green Energy Resources

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grassGreen Energy Resources signed a domestic biomass supply contract worth an estimated $300 million over 10 years with an unidentified U.S. power company.  Normally I would not write this up because the company is not named — what are they ashamed or something? — but it is a big deal and a lot of money so it is of interest. The player eventually will be known.

GRE, based in New York City, says the contract contains additional provisions for monthly fuel adjustments and yearly inflation increases over its 10-year span. According to Green Energy it is the “largest known U.S. supply contract to date for a single supplier.”   GRE estimated the biomass supply stream will begin in 2010.

Under the contract, the power plant requirements will exceed 1 million tons of biomass annually. “The contract is significant in reaching or exceeding Green Energy Resources projected revenue next year of $100 million,” it says.

Green Energy Resources, formerly New York International Log & Lumber Co, is publicly traded on the Pink Sheets under ticker GRGR.  Its mission is to become a major provider of low-cost, high-quality wood fiber fuels.

The company also recently announced a commitment from a group of private financiers, also unidentified, for up to $10 million. It said the private lenders have agreed that the first loan tranche will amount to $2 million.

It is working with various power generating utilities, government agencies and corporations on carbon emission strategies. It says it is 100 percent Kyoto Protocol compliant.

It  sources its biomass from urban wood waste streams, storm damage, cities and municipalities. It has been heavily involved in exporting wood chips to to European power plants.


Written by William DiBenedetto

1 July, 2009 at 4:47 pm

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