Plum Creek Timber Company, Inc., (NYSE: PCL) 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.
“This agreement highlights the value of the consistent and reliable supply chain services that Plum Creek provides to our wood fiber customers,” said Rick Holley, chief executive officer. “Plum Creek looks forward to working with Enova as it develops renewable energy projects in the Southeast. Further growth in bioenergy markets means cleaner energy, attractive returns for our investors and new jobs for those in the communities where we work and live.”
Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.3 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.
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This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "expects" and "will." The accuracy of such statements is subject to a number of risks, uncertainties and assumptions. These include, but are not limited to, risks, uncertainties and assumptions relating to the supply and demand for biomass, general operational risks and the state of the biomass energy market and of the general economy. It is likely that if one or more of the risks materializes, or if one or more assumptions prove to be incorrect, the current expectations of Plum Creek and its management will not be realized. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and neither Plum Creek nor its management undertakes any obligation to update or revise any forward-looking statements.