Pinnacle Renewable Energy (“Pinnacle” or the “Company”) (TSX: PL) has announced that it has entered into a new long-term, take-or-pay off-take contract with Mitsui & Co. Ltd. (“Mitsui”), a large, diversified trading company in Japan. Under the terms of the contract, Pinnacle will supply 100,000 metric tons per annum of industrial wood pellets to Mitsui beginning in Q3 2023. The industrial wood pellets will be used by a biomass power generation plant in Japan.
“We are pleased to enter into this new relationship with Mitsui and our fourth contract with Asian customers this year,” said Robert McCurdy, Chief Executive Officer of Pinnacle. “Our growing order book in Japan underscores both Japan’s strong commitment to decarbonization and the strength of our competitive position in this market. We are also pleased to support the B.C. economy through our growing exports of industrial wood pellets to Asia.”
“I am excited about this new partnership between Pinnacle Renewable Energy and Mitsui & Co, which uses B.C. wood waste to generate good jobs in B.C. and power clean, renewable electricity in Japan,” said John Horgan, Premier of B.C.
Japan is a supportive market for renewable energy, targeting 3.7% to 4.6% from biomass or 20 million MTPA in pellet equivalent terms, providing Pinnacle with a compelling opportunity to continue growing in this market.
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 coal that allows them 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, with a further plant under construction in Alberta. 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 100% of its announced production capacity through 2021 and 108% of its announced production capacity through 2026.