VANCOUVER, March 31, 2019 - Pinnacle Renewable Energy ("Pinnacle" or the "Company") (TSX: PL) announced that it has resumed production of wood pellets at its facility in Entwistle, Alberta (the "Entwistle Facility") using dry fibre on Friday, March 29, 2019.
Pinnacle continues to work with Alberta Labour Occupational Health & Safety, fire authorities, insurance adjusters, equipment suppliers, and third-party experts as part of the ongoing investigation of the February 11, 2019 fire in the dryer area of the Entwistle Facility. Pinnacle is working with its insurance provider to assess the amount of recoveries that it is entitled to as a result of the fire event. The Company expects to provide a further update on the Entwistle Facility during the second quarter.
Pinnacle also announced today that it has entered into a new long-term, take-or-pay contract with Sumitomo Corporation ("Sumitomo"), a large, diversified trading company in Japan. These industrial wood pellets will be used to supply its customer in Japan. Under the terms of the contract, Pinnacle will supply 200,000 metric tons per annum ("MTPA") of wood pellets to Sumitomo starting in 2022. This represents Pinnacle's 9th offtake contract signed in Asia and the third contract with Sumitomo since February last year. This will bring the Company's contracted regional sales into Asia to about 48% in 2022.
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power. Pinnacle is a trusted supplier to its customers, who require reliable, high-quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates eight industrial wood pellet production facilities in western Canada and one in Alabama, and owns a port terminal in Prince Rupert, B.C.
Source: Pinnacle Renewable Energy