About Pinnacle Renewable Energy
Pinnacle Renewable Energy Inc. produces wood pellets worldwide. The company produces renewable fuel for electricity generation in the form of industrial wood pellets, which are used by utilities and large-scale power generators to produce renewable and baseload power. The company’s customers are large European and Asian power generators and Asian trading companies, such as CGN Daesan, Drax, Lynemouth Power, Mitsubishi, RWE, Mitsui, Sumitomo, Toyota Tsusho and Uniper (or their affiliates). The company converts renewable wood fibre into industrial wood pellets which are sold to power plant operators in various international markets. Industrial wood pellets produced by it are used in converted coal power plants, newly constructed dedicated biomass facilities and are also co-fired in coal power plants. Industrial wood pellets are handled much like coal by power plants; they are milled into powder, mixed with air and blown into a boiler for combustion to heat water, which produces steam to turn a turbine and generate electricity. Its industrial wood pellets are a green substitute for coal. The company operates a network of nine production facilities (with an additional two under construction) throughout Canada (British Columbia and Alberta) and the U.S. (Alabama). In Canada, its network of optimal processing locations coupled with its wholly-owned Westview Terminal (the Westview Terminal), create efficiencies and scale of production that would be very difficult for new market entrants to replicate. Burns Lake The Burns Lake production facility (the Burns Lake Facility) is located in Burns Lake, British Columbia. The Burns Lake Facility is 100% owned by the company. Meadowbank The Meadowbank Facility is located in Strathnaver, British Columbia. The Meadowbank Facility is owned 100% by the company. Williams Lake The Williams Lake production facility (the Williams Lake Facility) is located in Williams Lake, British Columbia. The Williams Lake Facility is owned 100% by the company. Armstrong The Armstrong production facility (the Armstrong Facility) is located in Armstrong, British Columbia. The company acquired 100% of the Armstrong Facility in 2007. The Armstrong Facility primarily consumes sawmill shavings as its wood fibre input. Lavington The Lavington production facility (the Lavington Facility) is located in Lavington, British Columbia. The Lavington Facility is operated through a limited partnership (the Lavington Facility LP) that is owned 75% by the company and 25% by Tolko. The company is responsible for managing the Lavington Facility and its employees and providing marketing, sales and distribution services. Houston The Houston production facility (the Houston Facility) is located in Houston, British Columbia. The Houston Facility is operated through a limited partnership (the Houston Facility LP) that is owned 60% by Canadian Forest Products Ltd. (Canfor), 30% by the company and 10% by the Moricetown Band Development Corporation (the Moricetown Band). The Houston Facility LP is governed by a limited partnership agreement, which contains, among other provisions, certain restrictions on a change of control and prohibitions on the sale, pledge or disposition by Canfor, the company and the Moricetown Band of their respective interests in the Houston Facility LP. Pursuant to a series of contracts that expire at the end of 2026, the company is responsible for managing the Houston Facility. Entwistle The Entwistle Facility is located in Entwistle, Alberta. The Entwistle Facility is owned 100% by the company, and is strategically located on a CN main line and utilizes larger unit trains to transport wood pellets from the production facility to Pinnacle’s wholly owned Westview Terminal. The Entwistle Facility is designed to process a range of wood fibre types, including shavings, sawdust, bush grind, chips and hog. Smithers The Smithers Facility is located in Smithers, British Columbia. The Smithers Facility is operated through a limited partnership (the Smithers Facility LP) owned 70% by the company and 30% by West Fraser. The Smithers Facility is located beside West Fraser’s Pacific Inland Resources sawmill. The Smithers Facility is located approximately 360 kilometres from the company’s Westview Terminal. Aliceville The Aliceville Facility is located in Aliceville, Alabama. The company acquired a 70% interest in the Aliceville Facility in 2018. The Aliceville Facility is operated by Alabama Pellets, LLC (Alabama Pellets), which is owned 70% by the company, 20% by The Westervelt Company and 10% by Two Rivers Lumber Company, LLC. The Aliceville Facility has a run-rate production capacity of approximately 300,000 MTPA, of which approximately 210,000 MTPA is committed under a long-term off-take contract to a major European utility. Seasonality The company’s business is subject to certain seasonal fluctuations. History The company was founded in 1989. It was incorporated in 2010. The company was formerly known as Pinnacle Renewable Holdings Inc. and changed its name to Pinnacle Renewable Energy Inc. in 2018.
