Pinnacle to Construct New Wood Pellet Production Facility in Alabama

SEATTLE (Scrap Monster): Pinnacle Renewable Energy yesterday announced plans to construct a new industrial wood pellet production facility in southeast U.S. The new facility will be located adjacent to the company’s existing sawmill facility in Demopolis, Alabama. The commissioning of the facility is expected in Q2 2021.

The capital cost to construct the facility is estimated at around $99 million. The facility will have annual production capacity of 360,000 metric tonnes per annum of pellets. The project is in the final stages of design. The permit application process has already commenced. Furthermore, Pinnacle has entered into long-term fibre supply agreements with majority of suppliers.

A partnership has already been reached among Pinnacle, the Westervelt Company and Two Rivers Lumber Company, who will hold 70%, 20% and 10% interest respectively. In accordance with the partnership deal, Pinnacle will operate the facility and will be responsible for managing all aspects including customer relations, marketing, sales and logistics.

The finished pellets from the facility will be barged and loaded at the Port of Mobile, Alabama.

Commenting on the development, Rob McCurdy, CEO, Pinnacle noted that the announced expansion in the U.S. southeast region will help the company to align with its partners and fibre suppliers. In addition, it will diversify the company’s business in the region by optimizing fibre flow between the facilities.

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