Pinnacle resumes pellet production at Entwistle plant

By Pinnacle Renewable Energy | April 01, 2019

Pinnacle Renewable Energy announced that it has resumed production of wood pellets at its facility in Entwistle, Alberta, using dry fiber on March 29. 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 Feb. 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 Corp., 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 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 percent in 2022.