Sept. 6, 2018 - B.C.-based pellet producer Pinnacle Renewable Holdings is heading to the southern U.S. with the announced acquisition of an Alabama industrial wood pellet plant.
By Maria Church
Pinnacle announced today it has entered into a definitive agreement to acquire a 70 per cent interest in an operating industrial wood pellet production facility located in Aliceville, currently owned by The Westervelt Company. Westervelt will retain a 30 per cent ownership.
The facility has an annual production capacity of about 270,000 metric tonnes, 210,000 of which is committed under a long-term off-take contract to a major European utility. Pinnacle plans to sell the remaining volume through its contracted backlog of long-term, take-or-pay off-take contracts.
Pinnacle CEO Robert McCurdy said in a news release the acquisition is launching point for Pinnacle’s future growth in the U.S. Southeast, a key fibre basket.
“Through this transaction, we are also pleased to form a partnership with Westervelt, a leading forestry and land resource company in the region. We look forward to working with Westervelt to optimize the production capacity and operating efficiencies at the Aliceville Facility, and to jointly explore other potential future growth opportunities in Alabama and Mississippi,” McCurdy said.
“Our mutual dedication to safety, environmental responsibility, quality and our people provides a strong foundation for our partnership,” said Westervelt president and CEO Brian Luoma. “Where Pinnacle brings decades of pellet industry experience, we bring generations of land stewardship and management, our core business competencies. This was a natural partnership because of our shared values, and because this joint venture takes advantage of synergies between the two companies.”
Several large local sawmills will be supplying residuals to the Aliceville plant, including Westervelt’s sawmill, located in Moundville, Ala.