Pinnacle Renewable Energy, one of the world`s largest producers of wood pellets, has announced plans to construct a new industrial wood pellet facility in the US. The new production facility in the southeast US, close to Pinnacle`s Aliceville, Alabama plant, will produce 360,000 metric tonnes per annum (MTPA) and is expected to cost around 99 million USD (89 million EUR) to build.

Wood pellets produced at the Demopolis facility, as it will be called due to its location adjacent to an existing large sawmill in Demopolis, Alabama, will be sold through Pinnacle`s contracted backlog of long-term, take-or-pay off-take contracts. Commissioning of the Demopolis facility is expected in the second quarter of 2021.

The new facility will operate under a single partnership with Pinnacle, The Westervelt Company (TWC), a diversified land resources company, and Two Rivers Lumber Company (TRL), a McElroy Enterprises company, holding a 70%, 20% and 10% interest respectively. TWC will sell a 10% interest of its currently held 30% interest in the Aliceville facility to TRL.


Source: www.bioenergy-news.com