New England Wood Pellet, Sandri announce strategic partnership, sale of Propell Energy

| May 31, 2010
New England Wood Pellet LLC and The Sandri Cos. announced a formal strategic partnership between the two companies, as well as the acquisition by Sandri of NEWP's commercial pellet boiler business, Propell Energy, which is central to the partnership. Propell Energy was founded in 2008 to market commercial- and industrial-scale pellet boilers for heating schools, office buildings, apartment complexes and other large buildings. Propell also provides economical bulk pellet delivery to large commercial accounts. Sandri will fold Propell Energy into its emerging renewable energy division. Sandri's renewable energy group will be led by Jake Goodyear, president of Propell Energy. The partnership also involves a multiyear exclusive supply agreement in which Sandri will buy and resell bulk pellet fuels exclusively from NEWP for resale to residential and commercial customers. The two companies also partnered to secure a $3.2 million dollar grant from the Massachusetts Department of Energy Resources to install numerous commercial pellet boilers in western Massachusetts and increase the use of residential high-efficiency pellet boilers.