Pinnacle Renewable Energy on Tuesday announced that its subsidiary, Alabama Pellets, has signed an agreement with the state of Alabama that provides Alabama Pellets with incentives for job creation under Alabama’s Job Act Incentives program.
Canada’s Pinnacle holds a 70 percent interest in Alabama Pellets with The Westervelt Company and Two Rivers Lumber Co., LLC each holding 20 percent and 10 percent, respectively.
Alabama Pellets is constructing a new facility in Demopolis in Marengo County. The planned capital investment is $95 million. The facility is expected to have an annual production volume of 400,000 tons and will start initial industrial wood pellet production by mid-2021.
Pinnacle CEO Rob McCurdy said, “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. 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. The Alabama Job Act Incentives supports our approach to doing business and we are pleased to be part of the state’s ‘Made in Alabama’ program.”
Alabama Pellets has received a tax credit for job creation totaling $848,000 over 10 years, as well as an investment credit totaling $9.5 million spread over 10 years. The incentives are offered to businesses that provide benefit to the state and its citizens through positive economic impacts in the community and tax revenue to the state. In order to receive the wage incentive, Alabama Pellets’ facility in Demopolis will target employing a minimum of 45 employees that 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 Alabama Commerce Secretary Greg Canfield. “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.”
“We welcome the growth plans of Pinnacle and Alabama Pellets in our state,” Gov. Kay 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.”
Economic developer Nicole Jones said, “Alabama Pellets coming to Demopolis: Forestry and Paper Products is one of Alabama’s targeted business sectors. Alabama has the second largest timberland base in the United States and ranks seventh in lumber production. Alabama Pellets is a partnership between Tuscaloosa-based Westervelt, Canada’s Pinnacle Renewable Energy, and Demopolis-based Two Rivers Lumber Co. Pinnacle Renewable Energy Inc. is one of the world’s leading manufacturers and distributors of industrial wood pellets that are used by large-scale thermal power generators as a more environmentally-friendly alternative to produce reliable baseload renewable power. The Westervelt Company, known for its environmental stewardship, has been in Alabama for 135 years, a presence that highlights their important role as our state continues to lead in the forestry industry. The companies’ combined expertise will yield tremendous economic benefits for Marengo county and our entire state.”