In a sign of potential wide-scale growth in biomass in the Southeast, a renewable energy investor has announced a major move in Alabama’s developing biomass industry.
Pinnacle Renewable Holdings, which operates one of the world’s leading manufacturers and distributors of industrial wood pellets, has purchased a 70% stake in an operational pellet plant in Alabama.
Located in Aliceville, Alabama, the facility is operated by the Westervelt Company and produces 270,000 metric tons of wood pellets each year.
Under terms of the agreement, Westervelt will retain a 30% stake.
A significant majority of production – 210,000 metric tons – has already been contracted out to a European utility. The rest will be incorporated into Pinnacle’s backlog of wood pellet contracts. More production capacity could come as Westervelt is currently in the process of enlarging the plant’s capabilities.
According to the CEO of Pinnacle, Robert McCurdy, “Our acquisition of a majority stake in this facility will increase our production capacity and establishes a platform for Pinnacle’s future growth in the U.S. Southeast, one of North America’s key fiber baskets.”
About Pinnacle Renewable Holdings
Pinnacle is a holding company for several ventures, the cornerstone of which is Pinnacle Renewable Energy (PRE). PRE manufactures and distributes industrial wood pellets from several sources in North America, including British Columbia, with a primary focus on export to Europe and Asia.
The holding company reported revenue of $85.1 million in Q2 2018, up from $69.6 million in Q2 2017, a year-over-year increase of 22.3%.
About Alabama’s Biomass Industry
Alabama is one of the nation’s leading user of electricity from biomass, ranking fifth among states in the amount of electricity generated from biomass (191 trillion Btu).
There are currently 11 biomass power plants operating in the state, and three large wood pellet facilities. The number of operational pellet plants could double, if three proposed mills are constructed as planned.
In total, the biomass industry in Alabama employs over 94,000 people.
ProcessBarron engineers, constructs, and installs air, ash, and material handling equipment for biomass plants. Contact the team for more information.