Pinnacle Renewable Energy’s wood pellet shipping facility at Prince Rupert. (The Northern View)

Japanese buyer expands wood pellet contract with B.C.’s Pinnacle

Mitsui and Co. increases contract with Interior energy producer

Japan’s major buyer for B.C. wood pellet fuel has increased its contract with Pinnacle Renewable Energy to 100,000 tonnes per year, a bright spot for B.C.’s troubled forest industry.

Pinnacle, with production facilities across the B.C. Interior, signed a new contract Thursday with Mitsui and Co., which uses the wood pellets to fire a new biomass energy project in Japan. The contract was signed at a ceremony in Vancouver, with representatives of the companies and Premier John Horgan.

“Contracts such as this will allow Pinnacle to expand operations, to hire more people and to build the type of British Columbia that we all want,” Horgan said.

“It means that we can take the wood waste that used to sit on the forest floor and lead to some of the wildest fires in recent memory, and we can take that fibre and put it to useful economic benefit.”

Pinnacle CEO Robert McCurdy described it as “an exciting day” for the company’s work in “bringing green energy to the world.” The agreement was signed by McCurdy and Fumiaki Miyamoto, CEO of the Canadian division of Mitsui and Co.

“In order to build trust we keep our word, and we always look for a win-win with our stakeholders,” Miyamoto said.

RELATED: Pinnacle pellets feed hungry Japanese energy industry

RELATED: Second Japanese company makes deal with Pinnacle

Pinnacle signed a deal with Mitsui in April to sell 70,000 tonnes per year, shipped through its export facility at Prince Rupert. Japan has worked to diversify its energy supplies since a devastating earthquake and tsunami in 2011 destroyed its nuclear plant at Fukushima and led to curtailment of nuclear power. It is also a major importer of liquefied natural gas.

Pinnacle began operations as Pinnacle Feed and Pellet in 1989, with its first plant manufacturing pellet fuel from sawmill waste in Quesnel. It began operations in Williams Lake in 2004, Houston in 2006 and Meadowbank (Hixon) near Prince George in 2008.

Burns Lake production began in 2011, and its Westview pellet export terminal at Prince Rupert began operation in late 2013. Its Lavington mill, partnering with Tolko in the North Okanagan, started in 2015.

The company went public in 2018, and soon after began a redevelopment of its Smithers pellet production facility in partnership with West Fraser Timber. That began production in late 2018.

Pinnacle added a facility in Entwistle, Alberta in 2018, and later that year entered the U.S. southeast region by buying a 70 per cent stake in a pellet plant in Aliceville, Alabama.

In September, the company advised shareholders it was feeling the effects of the forest industry downturn.

“Despite positive production gains at the Smithers and Aliceville facilities, the company’s same-facility production in the third quarter of 2019 was down over 14 per cent compared to the third quarter of 2018, primarily as a result of the sawmill curtailments,” the company said in a statement.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Just Posted

Invermere gets new CAO

Invermere found his new CAO after a long period of research.

Radium council discusses short term rentals

RHS council are elaborating the second draft plan for STR

Farmers’ Institute report highlights emerging local food scene

Beef cattle ranching remains mainstay of valley agriculture

Beautification process begins in Canal Flats downtown

Canal Flats wants to improve the esthetic of the town

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Local councils important, Horgan says as municipal conference ends

B.C. NDP leader says ‘speed dating’ vital, online or in person

Penticton woman sentenced to one year in prison for manslaughter of teen boyfriend

Kiera Bourque, 24, was sentenced for manslaughter in the 2017 death of Penticton’s Devon Blackmore

B.C. Green leader says NDP abandoning environmental plan

Horgan’s claim of unstable government false, Furstenau says

Most Read