VANCOUVER, March 31, 2019 /CNW/ - Pinnacle Renewable Energy ("Pinnacle" or the "Company") (TSX: PL) announced that it has resumed production of wood pellets at its facility in Entwistle, Alberta (the "Entwistle Facility") using dry fibre on Friday, March 29, 2019. Pinnacle continues to work with Alberta Labour Occupational Health & Safety, fire authorities, insurance adjusters, equipment suppliers, and third-party experts as part of the ongoing investigation of the February 11, 2019 fire in the dryer area of the Entwistle Facility. Pinnacle is working with its insurance provider to assess the amount of recoveries that it is entitled to as a result of the fire event. The Company expects to provide a further update on the Entwistle Facility during the second quarter.
Pinnacle also announced today that it has entered into a new long-term, take-or-pay contract with Sumitomo Corporation ("Sumitomo"), a large, diversified trading company in Japan. These industrial wood pellets will be used to supply its customer in Japan. Under the terms of the contract, Pinnacle will supply 200,000 metric tons per annum ("MTPA") of wood pellets to Sumitomo starting in 2022. This represents Pinnacle's 9th offtake contract signed in Asia and the third contract with Sumitomo since February last year. This will bring the Company's contracted regional sales into Asia to about 48% in 2022.
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. 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 most recent Annual Information Form ("AIF") filed on SEDAR (www.sedar.com).
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 most recent AIF and Management's Discussion & Analysis for the fiscal year ended December 28, 2018 available on SEDAR for a discussion of the uncertainties, risks and assumptions associated with these statements.
SOURCE Pinnacle Renewable Energy Inc.