PROCESSWEST Magazine Online

Pinnacle planning to build new wood pellet facility

December 20, 2019   Don Horne




Pinnacle Renewable Energy is looking to build a new industrial wood pellet production facility in the southeast United States in close proximity to their Aliceville, Ala. facility.

The new Demopolis facility will be located adjacent to an existing large sawmill in Demopolis, Ala., and is expected to have annual production volume of 360,000 metric tonnes per annum (MTPA) that will be sold through Pinnacle’s contracted backlog of long-term, take-or-pay off-take contracts.

“Building on our early success at the Aliceville Facility, which is currently producing wood pellets ahead of the commissioning curve, we are pleased to be expanding our presence in the U.S. southeast and leveraging the existing relationships and infrastructure we have established in the area,” said Rob McCurdy, CEO of Pinnacle. “The U.S. southeast expansion further aligns the Company with our partners and fibre suppliers and allows for flexibility to optimize fibre flow between the facilities, while further diversifying our business in the region, which will see approximately 660,000 MTPA of pellet production once fully commissioned.”

Pinnacle is the third largest industrial wood pellet manufacturer and distributor in the world, operating eight industrial wood pellet production facilities in western Canada and one in Alabama, with an additional facility under construction in Alberta. The company owns a port terminal in Prince Rupert, B.C.

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Commissioning with initial industrial wood pellet production is expected in the second quarter of 2021.

Brian Luoma, president and CEO of The Westervelt Company, said “Since we began working with Pinnacle last year at the Aliceville mill, we have built a strong partnership based on our shared commitment to safety, quality, environmental responsibility and our communities. This new venture with Pinnacle and Two Rivers allows Westervelt to participate in a growing market while capturing the advantages of the abundant resources in this area. Whether it’s industry experience, supply chain advantages or land management expertise, this partnership will benefit from the strengths of each of the companies involved.”

Jay McElroy, president of TRL, said “We are excited to partner with Pinnacle and Westervelt in the expansion of their U.S. southeast wood pellet production. Both organizations have great reputations and success stories. This partnership accomplishes our goal to further expand our investment into wood products and build upon our businesses in the region.”

 


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