|The Westeview Terminal loading a ship with wood pellets for export.|
The British Columbia company has just signed a new contract for export
opportunities in the Asian market.
(photo from Pinnacle Pellet)
Shipping volumes through the Westview Terminal could be in for a bump next year as Pinnacle Pellet secures another export contract for its wood pellet inventories, with a new contract to service the Japanese market announced today by company officials.
Under the terms of the agreement with Ube Industries, Pinnacle will supply 70,000 metric tons per year of industrial wood pellets to the Japanese conglomerate, with the first shipment to leave Canada beginning in late 2019.
Robert McCurdy, Chief Executive Officer of Pinnacle, made note of the potential growth for the company that the contract with Ube brings, that as Japan begins a diversification program for its energy needs.
"Japan has made a strong commitment to decarbonization, and biomass is poised to become an increasingly important part of the country's energy mix," ... "One third of our $421 million in contracted backlog in 2017 was with customers in Japan, and this new contract with Ube further builds on our strong sales momentum in this growing market."
There are currently ten new biomass projects in various stages of development in Japan, the Ube contract could help provide Pinnacle with the entry opportunity to service those projects once they come on line.
The opportunity to expand its exports to Japan will also provide Pinnacle with expanded visibility in the Asian market which is expected to see some strong growth in the years to come, that will compliment the existing focus for shipments that finds much of Pinnacle's products directed towards the United Kingdom and the European Union countries.
More background on today's announcement can be reviewed here.
The energy pellet supplier has also released its most recent Overview for investors, a twenty eight page info graphic presentation that serves as a tour of where the industrial pellet industry is at, and what plans that Pinnacle has for the future.
The Westview Terminal makes for a key element of that presentation, the terminal on the Prince Rupert waterfront provides for one of the two shipment facilities for the company's growing list of production facilities.
In the last year Pinnacle has added a number of Northwest locations to their production system increasing their commitment to Northern British Columbia's forest sector.
You can review the full presentation here.
More items of interest related to Pinnacle Pellet's operations can be found on our archive page here.
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