Viridis Energy Inc. , a “Cleantech” manufacturer and distributor of alternative energy providing biomass fuel to global residential and industrial markets, announced today that it has signed a strategic agreement with AbellonCleanEnergy Limited, a leading integrated sustainable energy solutions provider based in Ahmedabad, India, with operations in the U.S., Canada, Europe, U.K., India and Africa. The collaboration of the two green energy companies covers three facets of the business: procurement and supply agreement for existing production, the proposed acquisition and development of Monte Lake property, and a strategic investment in Viridis.
The companies have agreed to a 5-year “off-take” agreement requiring Viridis to provide a minimum of 30,000 metric tonnes (MTs) of wood pellets during the first twelve months – beginning August 2011 – and 40,000 MTs annually during the remainder of the five year agreement, for a total of 190,000 MTs over the five-year contract. Abellon, with its worldwide marketing and sales capabilities, would receive exclusivity to market Viridis products to the residential home heating and commercial markets in the United Kingdom and Europe (Except Italy, where Abellon shall have exclusivity for all market segments, including Industrial power generation) for all wood pellets, agri-biofuels and energy pellets; Viridis has reserved the right to supply its wood pellets for industrial power generation in these regions. Abellon will also have the first right of refusal for at least 50 percent of the output of all Viridis’ present and future projects in North America.
In addition, Viridis and Abellon will form a joint venture company for the purposes of pursuing opportunities in alternative energy, including the construction of a new wood pellet facility at the Monte Lake Forest Products Ltd. (“Monte Lake”) located in Monte Lake, British Columbia. Viridis signed an option to purchase the Monte Lake property on May 27, 2010. Currently Viridis and Abellon are jointly negotiating new terms with Monte Lake and expect to close on the acquisition during the third quarter of this year, subject to TSXV approval, after which the disclosure of the final terms of the deal will be announced. All production of renewable bioenergy by facilities owned by the joint venture will be purchased by Abellon at a price based on a predetermined profit margin. To further solidify its partnership, Abellon has subscribed to 10 percent of Viridis’ common stock directly from the Company through participation in the private investment in public equity (PIPE) placement announced on December 10, 2010, as amended on June 30, 2011. Viridis looks forward to Abellon’s involvement at the Board of Directors level with the appointment of one nominee to the Board and one nominee to the Executive Committee of Viridis, subject to TSXV approval.
Abellon CleanEnergy, part of global Abellon Business Group, with interests in clean energy, agriculture, genomics research, education, and social development, endeavors to generate sustainable clean energy solutions through a focus on biomass pellets, bio-power, advanced generation biofuels, as well as newer value chain opportunities such as bio-refineries and its processing industry. The company currently has a portfolio of low-carbon energy technologies in the bio-energy sector that illustrate its focus on environmentally and financially sustainable global renewable energy.
Chris Robertson, Viridis’ chief executive officer, said, “Abellon’s ecological and business philosophies closely mirror those of Viridis, which makes this strategic partnership very important for both companies. Abellon has incredible research and marketing resources and, over the last few years, has studied the wood pellet industry to fully understand its potential as a sustainable bio-energy source and the growing worldwide demand for its use as a heating and energy source. We could not have found a better partner with which to participate in Viridis’ global expansion.”
“Abellon is committed to advancing access to sustainable energy, worldwide. We recognize the importance of energy to economic growth and development, especially to emerging countries. Our mission is to uncover innovative, endemic solutions that are environmentally and financially sustainable and locally supported, further contributing to regional economic progress,” commented Aditya Handa, Managing Director and CEO of AbellonCleanEnergy Limited. “Our research into biomass and, more specifically, wood pellets prompted us to search for an industry expert with which to partner. Viridis has a strong history in this industry and its management team has a solid background in the forestry industry. We are very pleased to have found such a proficient partner to team with as we expand our renewable biomass effort.”