Tuesday, July 23, 2019

Pinnacle Renewable Energy signs new contracts for Asian markets

The first six months many have delivered slightly lower shipment levels than normal for Pinnacle Renewable Energy's Westview Terminal, but the pace should pick up through this year and on into the future as some new contract arrangements herald increased growth for the British Columbia based company.

Last week the energy pellet manufacturer and shipper announced that it has entered into two new long-term contracts with customers in both Japan and South Korea.

The first contract is an extension of current agreement with Mitsubishi Corporation which will see 110,000 to 120,000 metric tons of industrial wood pellets delivered to Mistubishi beginning in 2021.

The second contract announcement of last week finds Pinnacle expanding its presence in the South Korean market, with the energy company signing a deal with GS Global a biomass independent power producer in that country.  As part of the deal, Pinnacle will supply 100,000 metric tons per year starting in 2022.

"These new contracts represent the strengthening of our relationship with Mitsubishi and expansion of our business in the Asian market, with the relationship with GS marking our third contract in South Korea. With the growth of our contracted back-log and diversification of our counterparties, we are continuing to evaluate and develop further opportunities to add incremental production capacity, supported by our recently expanded credit facility." -- Rob McCurdy, CEO of Pinnacle. 

More export contracts should mean more shipments out of Prince Rupert's
Westview Energy Pellet Terminal in the years to come

Earlier this month, Pinnacle announced plans for a partnership in a pellet production facility in High Level, Alberta. The partnership between Pnnacle and Tolko Industries could see up to 200,000 metric tons per year produced at the high Level facility.

The background to the latest contract opportunities can be reviewed here.

For more items of note about Pinnacle Energy and their Westview Terminal in Prince Rupert see our archive page here.

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