Pinnacle Renewable Holdings Inc. announced approval to commence the redevelopment by Smithers Pellet Limited Partnership ("SPLP") of an existing particle board facility in Smithers, British Columbia, Canada, to a wood pellet production facility.
SPLP is a limited partnership in which West Fraser Timber Co. Ltd. has a 30% and Pinnacle has 70% interest.
The facility, which is connected via direct rail link to Pinnacle's Westview Port Terminal, will have an annual production capacity of 125,000 metric tons. Initial wood pellet production at the facility is expected to commence in the 3Q 2018. Wood fibre supply for the facility and customer off-take agreements for the facility's annual production have been secured under long-term contracts.
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The company produces renewable fuel for electricity generation in the form of industrial wood pellets, which are used by global utilities and large-scale power generators to produce renewable and reliable baseload power.