/NOT FOR DISTRIBUTION IN THE UNITED STATES/
VANCOUVER, April 19, 2018 /CNW/ - Pinnacle Renewable Holdings Inc. ("Pinnacle" or the "Company") (TSX: PL) today announced that it has entered into a long-term, take-or-pay off-take contract with Ube Industries Ltd. ("Ube"), a diversified Japanese conglomerate with annual revenues of approximately US$6 billion. Under the terms of the contract, Pinnacle will supply 70,000 metric tons per annum of industrial wood pellets to Ube beginning in late 2019.
"Japan has made a strong commitment to decarbonization, and biomass is poised to become an increasingly important part of the country's energy mix," said Robert McCurdy, Chief Executive Officer of Pinnacle. "One third of our $421 million in contracted backlog in 2017 was with customers in Japan, and this new contract with Ube further builds on our strong sales momentum in this growing market."
Demand for industrial wood pellets in Japan is accelerating, supported by the government's Feed-in Tariff system. There are more than 10 new biomass projects currently in late-stage development in Japan. According to Hawkins Wright, a leading provider of market intelligence and analytical services to the international pulp, paper and biomass industries, the Japanese market represented 3% of global demand for industrial wood pellets in 2016 and forecasts this market to increase to approximately 10% of global demand in 2021 and 17% in 2026.
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. Pinnacle is a trusted supplier to its customers, who require reliable, high quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates seven industrial wood pellet production facilities in western Canada, a port terminal in Prince Rupert, B.C., and currently has a new production facility under construction in Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent 100% of its production capacity through 2021 and nearly 80% of its production capacity through 2026.
This news release may contain "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to Pinnacle's future financial outlook and anticipated events or results and may include information regarding its financial position, business strategy, growth strategies, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding the Company's expectations of future results, performance, achievements, prospects or opportunities or the markets in which it operates is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. If any of the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those expressed in the forward-looking information. The Company has no obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors, including those described in "Risk Factors" which are described in the Company's Annual Information Form ("AIF") filed March 27, 2018 on SEDAR.
We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect our results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" in the Company's AIF and Management's Discussion & Analysis for the fiscal year ended December 29, 2017 available on SEDAR (www.sedar.com) for a discussion of the uncertainties, risks and assumptions associated with these statements.
SOURCE Pinnacle Renewable Holdings Inc.