Alabama Pellets, a subsidiary of Pinnacle Renewable Energy, has signed an agreement with the State of Alabama to provide incentives for job creation under Alabama’s Job Act incentives programme.
Pinnacle holds a 70% interest in Alabama Pellets with The Westervelt Company and Two Rivers Lumber Co, each holding 20% and 10% respectively.
The incentives relate specifically to Alabama Pellets’ new industrial wood pellet production facility in Demopolis, with a planned capital investment of $95 million (€83.6 million). The facility is expected to produce 360,000 metric tonnes per annum and will start production by mid-2021.
Incentives for Alabama Pellets include a tax credit for job creation totalling $848,000 (€746,100) over 10 years, as well as an investment credit totalling $9.5 million (€8.3 million) spread over 10 years.
The incentives are offered to companies that provide benefit to the state and its citizens through positive economic impacts in the community and tax revenue to the state. To receive the wage incentive, Alabama Pellets’ Demopolis facility will target employing a minimum of 45 employees that earn an average hourly rate of $20 (€17.50).
Pinnacle’s CEO, Rob McCurdy, said: “Pinnacle and Alabama Pellets have been part of the Alabama business landscape since October 2018 and are proud to be part of the economic growth of this community. Our commitment as a good corporate citizen in the communities where we operate is to think local, hire local, and use local vendors and contractors.
“The Alabama Job Act Incentives supports our approach to doing business and we are pleased to be part of the state’s ‘Made in Alabama’ programme.”
“We welcome the growth plans of Pinnacle and Alabama Pellets in our state,” commented Kay Ivey, Governor of Alabama. “My administration has made it a priority to develop rural Alabama and this manufacturing facility under construction in Demopolis will have a significant economic impact on Marengo County and create meaningful new opportunities for many citizens there.”
Greg Canfield, secretary of the Alabama Department of Commerce, added: “We’re committed to helping create jobs in our state’s rural areas through strategic economic development, and the plans by Pinnacle and Alabama Pellets to locate a facility in Demopolis is a positive development for Marengo County.
“Alabama Pellets is making a major investment in this plant, which will drive economic growth in the region and spark the creation of direct and indirect jobs.”