BRITISH COLUMBIA (News release) -- Premier John Horgan joined Robert McCurdy, CEO of Pinnacle Renewable Energy, and Fumiaki Miyamoto, president and CEO, Mitsui & Co (Canada) Ltd., as they signed a contract that will see Pinnacle export 100,000 tonnes of industrial wood pellets to Japan annually to fuel Mitsui's new biomass power generation plant, Government of British Columbia announced. Exports will begin in 2023.

"Long-term prosperity for forest workers and forest communities means finding new markets and getting more value from forest products," Premier Horgan said. "Pinnacle is creating a new export opportunity that will generate good jobs in B.C. communities, while transforming wood waste into industrial pellets to provide Japan with clean, renewable electricity. It's a win-win."

Pinnacle Renewable Energy is the largest supplier of industrial wood pellets to Japan and the third-largest supplier of industrial wood pellets in the world. This new contract will significantly increase the company's production in B.C. Pinnacle operates manufacturing facilities in Quesnel, Williams Lake, Houston, Hixon, Armstrong, Lavington and Burns Lake, and export facilities in Prince Rupert and Vancouver.

"We are very pleased to be furthering our company growth, while supporting the B.C. economy through our growing exports of industrial wood pellets to Asia," McCurdy said. "Our growing relationship with the international community and Japan's commitment to decarbonization continues to have a positive impact right here at home in our B.C. communities."

The B.C government is supporting workers who have been affected by supply issues and market challenges, while working with trade partners to expand markets, attract investment and encourage growth in B.C.'s value-added wood products manufacturing industry.

"The end of the mountain pine beetle harvest and low lumber prices, and the ongoing Canada/U.S. trade dispute are creating real uncertainty in many interior communities," said Doug Donaldson, Minister of Forests, Lands, Natural Resource Operations and Rural Development. "But the value of wood pellet exports continues to grow, and I believe that as forest companies and communities come together to map out their futures, value-added wood products like mass timber and industrial wood pellets will become more important."

Pinnacle operates eight industrial wood pellet production facilities in western Canada and one in Alabama, with a further plant under construction in Alberta. 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 100% of its announced production capacity through 2021 and 108% of its announced production capacity through 2026.