Pinnacle Renewable Energy has entered into a limited partnership agreement with Tolko Industries Ltd. to build Northern Pellet Limited Partnership, a new industrial wood pellet production facility in High Level, Alberta. The facility will use wood fiber sourced primarily from Tolko’s existing sawmill in High Level. The facility is expected to have a run-rate production capacity of 170,000 to 200,000 metric tons per year.

Pinnacle and Tolko will each own a 50% interest. They have a similar arrangement in Lavington, BC between Pinnacle’s pellet mill there and Tolko’s sawmill.

Brad Thorlakson, President & CEO of Tolko, comments, “We’re excited to once again partner with Pinnacle Renewable Energy on a project that promises to bring economic, environmental, and employment benefits to both companies and the community of High Level. When commissioned, Northern Pellet Limited will reduce our carbon footprint, secure and increase full-time permanent employment opportunities in the area, and allow us to use all our bark, shavings, and sawdust to produce pellets for growing markets.” 

Pinnacle will operate the facility and manage all aspects of customer relations, marketing, sales and logistics. Tolko will supply both heat energy and fiber to the facility under long-term supply agreements. The facility, which will be built on land owned by Tolko, will begin construction in the third quarter of 2019. Initial wood pellet production is expected to commence in fourth quarter 2020.