Penton Backs Pellet-Art

Pellet-Art, a Poland-based wood pellet producer, has raised $9.5 million from Penton Partners. www.pettet-art.com

PRESS RELEASE

Penton Partners invested 25 million PLN (9.5 million USD) in Pellet-Art. Sp. z o.o. — one of the largest pellet producers in Poland.

Pellet-Art Sp. z o.o. was established in April 2004.  Production started in August 2005 and by June 2006 the company reached full capacity.  The proximity of the plant to the Polish/German border – just 100 km (62 miles) from Berlin, allows the company to serve retail clients in Germany and elsewhere in Western Europe.  In the first half of 2008 a new production plant will be built in south-western Poland, which will enable the company to double its production capacity.

Wood pellets are a highly efficient, environmentally friendly, renewable source of fuel.  Pellets have the form of a cylindrical granulate with a diameter of 6 to 12 mm and 20 to 30mm in length.  Since pellets are produced from forest and furniture industry wood waste, sawdust, wood chips and other wood by-products not a single tree is cut down for its production.  Moreover, the pellets are carbon neutral.  Carbon dioxide emissions from pellet combustion are equivalent to the same amount of carbon dioxide that has been used in growing the wood. Wood pellets burn at a very high temperature.  As a result, a 40-pound bag of pellets produces only three ounces of ash.  The cost of one kilowatt of heating energy when using wood pellets is about 35% lower than that of heating oil.  Because of this the utilization of pellets is increasing globally.  It is estimated that over the next five years the consumption in Europe will triple. 

Pellet-Art currently employs 70 people and plans to hire an additional 15 people when the new production plant is operational. In 2006 Pellet