Gov. Kay Ivey today announced that Alabama Pellets, a subsidiary of Canada-based Pinnacle Renewable Energy, plans to invest $95 million to construct a production facility in Demopolis.
The Alabama Pellets facility is expected to have an annual production volume of 360,000 metric tons and will start industrial wood pellet production by mid-2021. The company has set an initial target of hiring at least 45 workers.
“We welcome the growth plans of Pinnacle and Alabama Pellets in our state,” Ivey said. “My administration has made it a priority to develop rural Alabama, and this manufacturing facility under construction in Demopolis will have a significant economic impact on Marengo County and create meaningful new opportunities for many citizens there.”
Pinnacle has signed an agreement under Alabama’s Jobs Act Incentives program.
Pinnacle holds a 70% stake in Alabama Pellets, with Tuscaloosa-based Westervelt Co. and Demopolis-based Two Rivers Lumber Co. holding 20% and 10%, respectively.
“Pinnacle and Alabama Pellets have been part of the Alabama business landscape since October 2018 and are proud to be part of the economic growth of this community,” Pinnacle CEO Rob McCurdy said.
“Part of our commitment as a good corporate citizen in the communities where we operate is to think local, hire local and use local vendors and contractors.”
‘Positive development’
Incentives for Alabama Pellets include a tax credit totaling $848,000 over 10 years for job creation, as well as an investment credit totaling $9.5 million, also spread over 10 years, according to the Alabama Department of Commerce.
“The Alabama Jobs Act Incentives supports our approach to doing business, and we are pleased to be part of the state’s ‘Made in Alabama’ program,” McCurdy said.
The incentives are offered to businesses that provide benefit to the state and its residents through positive economic impacts in the community and tax revenue to the state. To receive the wage incentive, Alabama Pellets will target employing a minimum of 45 employees who earn an average hourly wage of $20.
“We’re committed to helping create jobs in our state’s rural areas through strategic economic development, and the plans by Pinnacle and Alabama Pellets to locate a facility in Demopolis is a positive development for Marengo County,” said Greg Canfield, secretary of the Alabama Department of Commerce.
“Alabama Pellets is making a major investment in this plant, which will drive economic growth in the region and spark the creation of direct and indirect jobs.”
Pinnacle Renewable
Vancouver-based Pinnacle is the world’s third-largest manufacturer and distributor of industrial wood pellets, a sustainable fuel for renewable electricity generation. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power.
The company operates eight industrial wood pellet production facilities in Canada and one in Alabama, with two additional facilities under construction in Alberta, Canada, and Alabama. It also owns a port terminal in Prince Rupert, British Columbia.
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% of its production capacity through 2026.
This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.
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July 15, 2020 at 06:04AM
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Pinnacle Renewable Energy plans $95 million wood pellet plant in Alabama - Alabama NewsCenter
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