VANCOUVER, BC, Sept. 22, 2020 - Pinnacle Renewable Energy ("Pinnacle" or the "Company") (TSX: PL) today reported that in response to the disruption in service caused by the structural failure of a silo at the Fibreco Export Inc. ("Fibreco") shipping terminal in North Vancouver that occurred on September 11, 2020, the Company has temporarily diverted all pellet shipping activity to its wholly owned Westview shipping terminal in Prince Rupert, British Columbia ("Westview").
No Pinnacle pellets were damaged as a result of the Fibreco incident.
"We commend the team at Pinnacle for their fast response in diverting shipping activities scheduled at the Fibreco terminal to our own Westview terminal and minimizing disruption to our business," commented Rob McCurdy, CEO of Pinnacle. "This is another example of the positive benefits of our shipping terminal diversification strategy which contributes to Pinnacle being among the lowest risk wood pellet producers in the world."
As it is unclear at this time when Fibreco will resume shipping activities, Pinnacle is working to minimize the impact from this disruption on the Company. Pinnacle expects to have additional costs during Q3 2020 related to demurrage as a result of the redirection of a ship to Westview and additional rail expenses related to moving pellet inventory from Pinnacle's southern B.C. mills to Westview. These additional costs are not expected to have a material impact on the business.
Pinnacle is a growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power. Pinnacle is a trusted supplier to its customers, who require reliable, high-quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates eight industrial wood pellet production facilities in western Canada and one in Alabama, with two additional facilities under construction in Alberta and Alabama. The Company also owns a port terminal in Prince Rupert, B.C. 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.
Source: Pinnacle Renewable Energy Inc.