Pinnacle Renewable Energy ("Pinnacle") is responding in order to minimize the risks from the COVID-19 health threat to its employees, stakeholders, and communities in which it operates. CEO Rob McCurdy, having previously announced his retirement effective May 5, 2020, is now committed to remain with Pinnacle through this crisis until October 31, 2020.
Currently, operations at all of Pinnacle's facilities remain unimpacted and its employees are focused on work safety while adjusting to the recommended COVID-19 practices, including social distancing, thorough hand washing, avoiding close contact with others, and regular cleaning and disinfecting of objects and surfaces. These practices have also been enforced for fibre deliveries and other visitors to all Pinnacle facilities.
Capital projects at the High Level and Demopolis facilities are continuing under the expected precautions for COVID-19, and while the Williams Lake facility continues to operate with the current dryer in place, the dryer upgrade project has been put on hold until equipment vendors can be onsite for commissioning purposes without any restrictions.
From an economic perspective, Pinnacle does not expect demand for pellets to be impacted as the Company has long-term take or pay contracts with its customers in place, and in the event power consumption declines, it is expected that use of other non-renewable fuels will be reduced ahead of any reduction in wood pellet use. However, in the event of a possible recession due to the COVID-19 health threat, demand for lumber could be reduced, thereby impacting the supply of sawmill residual fibre. In this case, Pinnacle has a strategy in place for use of harvest residuals and increased inventories that it has been utilizing as a result of sawmill curtailments experienced in British Columbia, Canada.
Pinnacle Renewable Energy produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.
