Pinnacle announces wood pellet plant in Demopolis
VANCOUVER, B.C., Canada – Pinnacle Renewable Energy Thursday announced the planned construction of a new industrial wood pellet production facility in Demopolis, adjacent to Two Rivers Lumber Company and in close proximity to Pinnacle’s Aliceville, facility.
The Demopolis Facility is expected to have annual production volume of 360,000 metric tons per annum. The facility should begin wood pellet production in the second quarter of 2021.
The new plant will operate under a single partnership with Pinnacle, The Westervelt Company, and Two Rivers Lumber, holding a 70%, 20% and 10% interest, respectively.
TWC will sell a 10% interest of its currently held 30% interest in the Aliceville Facility to TRL. Under the terms of the partnership, Pinnacle will operate the Demopolis Facility and manage all aspects of customer relations, marketing, sales and logistics.
Anticipated capital costs to construct the Demopolis Facility is expected to be approximately $99 million.
The Demopolis Facility, to be located on the same river system as the Aliceville Facility, will be constructed to ensure finished pellets can be barged and loaded at the port in Mobile, the same port used for pellets produced at Aliceville. The Demopolis plant is in the final stages of design and construction, and permit applications have commenced. Long-term fiber supply agreements have been completed with the majority of suppliers, including TWC and TRL.
“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.
“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,” said Brian Luoma, president and CEO of TWC.
“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.”
“We are excited to partner with Pinnacle and Westervelt in the expansion of their U.S. southeast wood pellet production,” added Jay McElroy, president of TRL.
“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.”
Pinnacle is the third largest producer of wood pellets in the world, producing sustainable fuel for renewable electricity generation. The company takes pride in its industry leading safety practices.