Westview pellet terminal in Prince Rupert. (File photo)

Pinnacle pellets to feed hungry Japanese biomass industry

Canadian biomass company to sell 70,000 metric tonnes annually to Japan by end of 2019

A lot more wood is about to pass through Prince Rupert — as pellets.

On Friday, the company that owns Westview pellet terminal, Pinnacle Renewable Energy Group, announced they have finalised a contract to sell 70,000 metric tonnes of wood pellets annually to a Japanese conglomerate, Ube Industries Ltd., by the end of 2019.

“Japan has made a strong commitment to decarbonization, and biomass is posed to become an increasingly important part of the country’s energy mix,” said Robert McCurdy, Pinnacle’s CEO.

The long-term take-or-pay contract guarantees Pinnacle Renewable Energy Group will receive payment for its pellets — even if future demand decreases in Japan.

Biomass fuels, including wood pellets, are in high demand in Japan. The demand for wood pellets is buoyed by a feed-in tariff, which is a system where independent producers are paid for their contributions to the national grid. This is already established as part of Japan’s carbon-reduction program, as a result independent biomass power plants have proliferated across the country.

READ MORE: Smithers pellet plant ready to build

As of September 2017, more than 800 independent projects had received government approval with a total proposed power generation capacity of more than 12.4 gigawatts — equivalent to the power generated by 12 nuclear reactors. At least 10 of those plants are in the late-phase development.

As more plants come on-line, Japan’s demand for biomass —including Canadian wood pellets — is projected to increase by more than 350 per cent. Yet in Japan, questions remain by analysts about the feasibility of so many biomass projects. Japan’s energy grid is not equipped to handle so many independent power plants and many of the proposed plants don’t have a guaranteed long-term fuel source.

There are also concerns among climate change analysts about the overall reductions in carbon emission gained by biomass-based electricity generation.

Pinnacle, regardless, has a guarenteed deal with Ube Industries and continues to grow its business.

READ MORE: High winds dent a silo at the pellet terminal



newsroom@thenorthernview.com

Like us on Facebook and follow us on Twitter

Pinnacle PelletsPinnacle TerminalPort of Prince Rupertwood pellets

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

CGL must revise impact assessment on Unist’ot’en Healing Center

Environmental Assessment Office not satisfied with report’s shortcomings

Confusion surrounds terms of RCMP withdrawal from pipeline construction area

B.C. Deputy Commissioner clarifies terms of agreement following minister’s statements

Two Terrace ringette athletes help regional team win silver

The Pacific Ring AA Ringette Tournament took place in Richmond, B.C.

Groups in Terrace receive grants from logging profits

Money comes from the city-owned Terrace Community Forest fund

HIGHLIGHTS: Day one and two at the 2020 BC Winter Games

Athletes had sunny – but cold – weather to work with in Fort St. John

Tyler Toffoli scores twice, Canucks crush Bruins 9-3

Stecher, Miller each add three points for Vancouver

Zamboni driver, 42, earns NHL win over Maple Leafs

Emergency goalie called into action for Carolina Hurricanes

Governor general says multiple solutions needed for ‘complicated’ overdose issue

Julie Payette met at a fire hall with firefighters and police officers as well as politicians and health experts

Landlord ordered to pay $11K after harassing B.C. mom to move days after giving birth

Germaine Valdez was pressured to move just a few days after giving birth by C-section to her child

Heart attacks strike B.C. husband and wife just over one year apart

Courtenay couple share personal stories to bring awareness to heart month

‘Nothing surprises us anymore:’ U.S. border officials find brain in package

U.S. Customs and Border Protection agents found the brain packed in a glass mason jar in a Canada Post shipment

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

Eyes on police after Trudeau orders blockades torn down, injunctions enforced

The RCMP in B.C. have sent a letter to the traditional leaders of the Wet’suwet’en Nation

Most Read