Demopolis will be home to a $95 million wood pellet production plant opening in 2021.
Alabama Pellets, a subsidiary of Pinnacle Renewable Energy, announced plans for the project this morning, which should begin production in the middle of next year. The company plans to hire 45 workers initially at an average wage of $20 an hour.
Vancouver-based Pinnacle is the world’s third largest manufacturer and distributor of industrial wood pellets, which are used as fuel for renewable electricity generation in large-scale thermal power generators. The industry touts pellets as a greener alternative to coal-generated power.
The company currently operates a production facility in Alabama and one under construction here, as well as seven industrial wood pellet production facilities in western Canada.
Pinnacle holds a 70 percent stake in Alabama Pellets, with Tuscaloosa-based Westervelt Co. holding 20 percent and Demopolis’ Two Rivers Lumber Co. with 10 percent.
Incentives for Alabama Pellets include a tax credit for job creation totaling $848,000 over 10 years, as well as an investment credit totaling $9.5 million, also spread over 10 years, according to the Alabama Department of Commerce.
Gov. Kay Ivey, in a statement, said the project will have a significant economic impact on Marengo County and “create meaningful new opportunities for many citizens there.” Alabama Commerce Secretary Greg Canfield said the project will “spark the creation of direct and indirect jobs.”
West Alabama has attracted several wood pellet operations recently. Last October, Maryland-based biofuel company Enviva announced it will build a $175 million wood pellet production plant at the Port of Epes in Sumter County, creating at least 85 jobs and 180 incidental jobs in logging, transportation and local services.
The projects are aided by a high demand internationally for the product. 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 percent of its production capacity through 2026.
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July 14, 2020 at 08:35PM
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$95 million Demopolis wood pellet plant under construction - AL.com
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