Japanese energy company Sinanen has refuted claims it has a contract with a company that is seeking to recommence the export of wood chips from Newcastle harbour.
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During a pre-IPO (initial public offering) last year, Sweetman Renewables announced that it had a $90 million contract with a Japanese conglomerate to supply woodchips over 20 years.
Following inquires from Friends of the Earth Japan, Sinanen chief executive Masaki Yamazaki said the suggestion that Sinanen had signed a contract with Sweetman was deplorable.
"We don't/will not have any contract with Sweetman on wood chips supply. We deplore the announcement that Sweetman had signed an agreement with us (Sinanen Holdings) to import wood chips," Mr Yamazaki wrote in a letter to the Nature Conservation Council.
"It is true that we took small samples from Sweetman through an intermediary broker, but we gave up the business with them, since they do not seem to comply with our environmental commitments or policy.
"In line with a Japanese national policy, we will keep on working for renewable energy business in the future. However, we do not intend to use biomass fuels without official certification, which could lead to any environmental damage."
Sweetmans Renewables chairman John Halkett did not respond to questions about Sinanen's comments.
The Nature Conservation Council has asked the Australian Securities and Investments Commission to investigate whether Sweetman Renewables misled the public and potential investors.
"Publicly purporting to have a significant contract with an established energy company is obviously critical information for potential investors, regulators and the public, but this information appears to be false," Acting chief executive officer Jacqui Mumford wrote in a letter to ASIC.
Sweetman Renewables is also negotiating with Verdant Earth Technologies to be the primary supplier to its 151 megawatt biomass power station at Warkworth near Singleton.
The project's opponents say the project will result in the intensification of native forest logging.
But Sweetman argues the biomass used for power generation consists of sawmill and wood processing waste that would otherwise rot.
This included residues from sawmills and further wood processing using logs supplied under existing contractual arrangements by the Forestry Corporation of NSW.
The NSW Department of Primary Industries has distanced itself from a push to convert Redbank Power Station into a biomass generator.
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Matthew Kelly
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
