VANCOUVER, Nov. 27, 2018 /CNW/ - Pinnacle Renewable Holdings Inc. ("Pinnacle" or the "Company") (TSX: PL) today announced that it has commenced initial pellet production at its new production facility in Smithers, British Columbia (the "Facility"), which is owned 70% by Pinnacle and 30% by West Fraser Timber Co. Ltd. ("West Fraser") (TSX: WFT) through a limited partnership.
"With construction now nearing completion, we are pleased to report successful initial production runs at this new facility," said Rob McCurdy, CEO of Pinnacle. "We expect commissioning of the Facility to be straightforward, due to its simple design and a fibre plan that consists mostly of clean, easily processed sawdust and shavings, supplied primarily by our partner West Fraser."
The Facility is connected by direct rail link to Pinnacle's nearby Westview Port Terminal. Fibre supply for the Facility and customer off-take agreements for its annual production have been secured under long-term contracts. Pinnacle is now gradually ramping up production at the Facility and expects to reach full run-rate production of 125,000 metric tons per annum in the third quarter of Fiscal 2019.
"When our new Entwistle, Aliceville and Smithers production facilities reach full run-rate production next year, we'll have added approximately 795,000 metric tons of annual production capacity through growth initiatives we commenced in 2018, representing an increase of more than 50 per cent," continued Mr. McCurdy. "Looking ahead, we will remain focused on advancing additional growth projects to meet the production demand from our large and growing contract backlog."
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable 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 eight industrial wood pellet production facilities in western Canada and one in Alabama, and owns a port terminal in Prince Rupert, B.C.
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.
SOURCE Pinnacle Renewable Holdings Inc.