Moelven and SCA enter into pellet off-take collaboration
Norway-headed wood products major Moelven Industrier ASA has announced that it has entered into a cooperation agreement with Sweden-headed forest industry major SCA to supply wood pellets from Moelven Pellets' new pellet plant currently under construction.
According to a statement, the collaboration will provide SCA with a long-term and exclusive supply agreement of 80 000 tonnes per annum, which is the entire production volume from the facility in Sokna in Eastern Norway.
This is a massive agreement for Moelven Pellets, a company that will first start its operations in the fall of 2019. We are proud to become a supplier to such an experienced group with exciting ambitions regarding renewable energy. This agreement also shows that Moelven ventured into the pellet market at the right time with our energy-efficient and innovative pellet plant, said Lars Storslett, CEO, Moelven Pellets AS.
The pellet plant is being built by Estonia-based AS Hekotek and is expected to be operational during the latter half of 2019. Although SCA has its own pellets production in Sweden, the company is growing within the area of renewable energy and have an increasing need for wood pellets.
I look forward to cooperating with Moelven, and I’m pleased that we have been trusted to convey this large volume of quality pellets to the market. In the transition towards a more sustainable society, we see an increasing need for biofuels. This applies to all sectors, but especially within the transport sector. Together, SCA and Moelven can contribute to a positive development for renewable energy, commented Stefan Rönnqvist, SCA.