Wood pellets maker Pinnacle signs three-year fibre supply deal

Wood pellets. Author: U.S. Department of Agriculture. License: Creative Commons, Attribution 2.0 Generic

December 17 ( Renewables Now) - Canadian industrial wood pellet manufacturer Pinnacle Renewable Holdings Inc (TSE:PL) on Monday said it had signed a three-year fibre supply deal with Alkali Resource Management Ltd.

As part of the agreement, the British Columbia-based forest management company will process, store and supply biomass from harvest residuals to Pinnacle's Williams Lake plant in the province.

The agreement is part of the collaboration between the Esk'etemc Nation, which owns Alkali Resource Management, and Pinnacle, aimed at improving fibre utilisation and supporting economic development within the nation's managed forests.

Pinnacle CEO Rob McCurdy said the deal will help the company compensate for the shortage of sawmill residuals it has faced in the province this year.

The wood pellets produced by Pinnacle are used as fuel for renewable power generation. The company has contracts with utilities in the UK, Europe and Asia for an average of 108% of its production capacity through 2026.

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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