Mitsubishi Corporation and Weyerhaeuser signed a strategic Memorandum of Understanding (MoU) to explore the possibilities of collaborating in the biomass-to-energy business.

The two companies are specifically interested in assessing the feasibility of jointly investing in and operating a commercial-scale bio-pellet production facility in the United States by 2011. Depending on the success of the joint feasibility study, more facilities could follow in addition to the initial bio-pellet production facility.

The MoU brings together two industry leaders and leverages the strengths of both companies: Weyerhaeuser's capacity to produce renewable biomass at scale from its sustainably managed forests and Mitsubishi Corporation's worldwide network and experience in the energy sector and bio-pellet manufacturing business.

And for the record, the bio-pellets would be produced using wood based biomass from U.S.-sourced sustainably managed forest resources or by-products and sold to utilities and industrial users for energy production.

[source: Mitsubishi Corporation]