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Pellet production begins at Pinnacle’s new Alberta facility

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Pellet production has started at Pinnacle Renewable Energy’s new facility in Alberta, Canada.

Pinnacle owns 50% of the new facility in High Level and 50% is owned by Tolko Industries through a limited partnership. The High Level mill further diversifies the company’s supply base using high-quality wood fibre sourced primarily from Tolko’s sawmill in the area.

The mill has a projected run-rate capacity of 200,000 tonnes per year. Production will be sold through Pinnacle’s contracted backlog of long-term, take-or-pay offtake contracts.

“We are pleased to have achieved this milestone at High Level,” said Duncan Davies, CEO of Pinnacle. “The mill has exceeded expectations through its first two weeks of operations, largely due to the effective collaboration between our capital projects and operations groups, as well as the strong working relationship with Tolko that has existed since our first joint investment in Lavington, BC, in 2015.

“The commissioning of this mill along with our project at Demopolis, Alabama, which is scheduled for completion in Q2 2021 will increase Pinnacle’s overall production capacity by almost 25% to 2.8 million tonnes per annum and increase the portion located in jurisdictions outside BC to approximately 44%.”

Brad Thorlakson, president and CEO of Tolko, said the company was “proud” to see the start of pellet production at High Level.

“The facility brings economic and employment benefits to our companies and the community,” said Thorlakson,” and by using green energy from biomass in the manufacturing process, there are environmental benefits as well that help reduce our carbon footprint.”

Pinnacle is gradually increasing production at the High Level mill and expects to reach full run-rate production in 2021.