Pinnacle resumes production at Entwistle and reveals new off-take deal
In Canada, Pinnacle Renewable Energy Inc., (Pinnacle) has announced that it has resumed production of wood pellets at its facility in Entwistle, Alberta (AB) using dry fibre. Production was resumed on March 29, 2019, after being halted following a fire incident on February 11, 2019. Pinnacle has also signed a new long-term off-take contract for Japan.
According to a statement, 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.
Pinnacle has also announced 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 tonnes 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 and will bring Pinnacle’s contracted regional sales into Asia to about 48 percent in 2022.