VANCOUVER, BC, Jan. 7, 2021 /CNW/ - Pinnacle Renewable Energy ("Pinnacle" or the "Company") (TSX: PL) today announced that it has entered into an extension of a long-term, take-or-pay off-take contract with Mitsubishi Corporation Ltd. ("Mitsubishi"), a large, diversified trading company in Japan. Under the terms of the extension, Pinnacle will supply 80,000 to 90,000 metric tons per annum of industrial wood pellets to Mitsubishi beginning in Q1 2023. The industrial wood pellets will be used by a biomass power generation plant in Japan.
"We are excited to grow our business with our Asian customers," said Duncan Davies, Chief Executive Officer of Pinnacle. "We have developed a special relationship with Japan and we share their strong commitment to decarbonization and their replacement of fossil fuels with sustainable wood pellets."
Wood pellet usage in Japan has continued to grow alongside the build-out of biomass generating capacity there, providing Pinnacle with a geographically advantaged opportunity to continue expanding in this market.
Pinnacle is the second largest producer of industrial wood pellets in the world. The Company's products are used to displace fossil fuels in the production of baseload electrical power in key markets around the world. Pinnacle is a trusted supplier to its customers who require reliable, high quality fuels to maximize the utilization of their facilities. The Company operates nine production facilities in Western Canada and one in Alabama, with one additional facility under construction in Alabama and more in development. The Company also owns a port terminal in Prince Rupert, B.C. Pinnacle has entered into long-term, take-or-pay contracts with utilities in the U.K., Europe and Asia that represent an average of 99% of its production capacity through 2026.
SOURCE Pinnacle Renewable Energy Inc.