UPDATE 1-Mitsubishi, Weyerhaeuser exploring biomass venture

* Looking at building bio-pellet facility in U.S. by 2011

* Other facilities may follow if feasible

* Pellets would be sold to utilities, industrial users

NEW YORK, Feb 1 (BestGrowthStock) – Mitsubishi Corp (8058.T: ) and
Weyerhaeuser Co (WY.N: ) said on Monday that they had agreed to
look into collaborating in the biomass-to-energy industry and
potentially building bio-pellet production facilities in the
United States.

According to a joint statement the companies are looking
into the feasibility of making joint investments in a
commercial-scale bio-pellet facility that they would operate in
the United States by 2011.

Depending on the success of a feasibility study they are
cooperating on, they could build more facilities in addition to
the first one, the companies said.

The bio-pellets would be produced using wood based biomass
from sustainably managed forests in the United States and sold
to utilities and industrial customers for energy production,
the companies said.

Mitsubishi currently operates two bio-pellet factories in
Japan and is also involved in managing Vis Nova Trading GmbH, a
bio-pellet producer in Germany.

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(Reporting by Sinead Carew; editing by Carol Bishopric)

UPDATE 1-Mitsubishi, Weyerhaeuser exploring biomass venture