Pinnacle Renewable Energy plans to locate a new industrial wood pellet production facility in Demopolis, Alabama.

The new facility will be located adjacent to an existing sawmill in Demopolis. The Demopolis Facility is expected to have annual production volume of 360,000 metric tonnes a year. Commissioning of the Demopolis Facility is expected in the second quarter of 2021.

The Demopolis Facility is currently in the final stages of design and construction planning and permit applications have commenced. Long-term fibre supply agreements have been completed with the majority of suppliers, including TWC and TRL.

The Demopolis Facility will utilize the same river system as the Aliceville Facility, barged and loaded at the port in Mobile, Alabama, which is the same port used for pellets produced at the Aliceville Facility.

"Building on our early success at the Aliceville Facility, which is currently producing wood pellets ahead of the commissioning curve, we are pleased to be expanding our presence in the U.S. southeast and leveraging the existing relationships and infrastructure we have established in the area," said Rob McCurdy, CEO of Pinnacle. "The U.S. southeast expansion further aligns the company with our partners and fibre suppliers and allows for flexibility to optimize fibre flow between the facilities, while further diversifying our business in the region, which will see approximately 660,000 MTPA of pellet production once fully commissioned."

Brian Luoma, President & CEO of The Westervelt Company says "Since we began working with Pinnacle last year at the Aliceville mill, we have built a strong partnership based on our shared commitment to safety, quality, environmental responsibility and our communities. This new venture with Pinnacle and Two Rivers allows Westervelt to participate in a growing market while capturing the advantages of the abundant resources in this area. Whether it's industry experience, supply chain advantages or land management expertise, this partnership will benefit from the strengths of each of the companies involved."

Jay McElroy, President of TRL said "We are excited to partner with Pinnacle and Westervelt in the expansion of their U.S. southeast wood pellet production. Both organizations have great reputations and success stories. This partnership accomplishes our goal to further expand our investment into wood products and build upon our businesses in the region."