$99 million wood pellet plant planned in Alabama

Photo By Pinnacle Renewable Energy

DEMOPOLIS, Ala.  — Construction of a $99 million wood pellet production plant is planned for Demopolis, Alabama, the second announced in the state in the last three months. In October Enviva announced plans to invest approximately $175 million to construct a wood pellet production plant in Epes, which is in Sumter County, West Alabama.

The Demopolis facility will be a partnership between Pinnacle Renewable Energy (70%), The Westervelt Co. (20%) and Two Rivers Lumber Co. (10%), and have an annual production volume of 360,000 metric tonnes per annum. Located near Pinnacle's Aliceville, Alabama facility, the plant is expected to be online by second quarter 2021.

"The U.S. southeast expansion further aligns the company with our partners and fiber suppliers and allows for flexibility to optimize fiber flow between the facilities, while further diversifying our business in the region," Pinnacle CEO Rob McCurdy said in a statement.

"This new venture with Pinnacle and Two Rivers allows Westervelt to participate in a growing market while capturing the advantages of the abundant resources in this area. Whether it's industry experience, supply chain advantages or land management expertise, this partnership will benefit from the strengths of each of the companies involved," added Brian Luoma, Westervelt president and CEO.

Headquartered in Vancouver, Canada, Pinnacle (TSX: PL) is reportedly the third-largest wood pellet producer in the world. Westervelt is headquartered in Tuscaloosa, Alabama, and Two Rivers Lumber is based in Demopolis, Alabama.


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About the author
Karen Koenig | Editor

Karen M. Koenig has more than 30 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As editor of special publications under the Woodworking Network brand, including the Red Book Best Practices resource guide and website, Karen’s responsibilities include writing, editing and coordinating of editorial content. She is also a contributor to FDMC and other Woodworking Network online and print media owned by CCI Media. She can be reached at [email protected]