Pinnacle Renewable Energy to be sold to British firm. (Houston Today photo)

British firm to buy Pinnacle Renewable

Pinnacle’s largest shareholder in agreement

A British-based bio-energy company has reached a deal to buy Pinnacle Renewable Energy which owns half of the Houston pellet plant.

The deal will see the Drax Group spend $831 million for Pinnacle’s shares and assumption of its net debts.

Pinnacle is the second largest producer of industrial wood pellets in the world and operates nine production facilities in Western Canada and one in Alabama, with another one under construction in Alabama. It also operates the Westview Terminal in Prince Rupert through which it exports pellets made by its plants.

Drax, which got its start operating coal-fire power-generating plants in Great Britain, has developed into a power generating utility using biomass. In the process, it has been switching from coal to renewal energy sources and its holdings now include facilities using hydro power.

“The combination of Pinnacle and Drax will create a global leader in sustainable biomass with the vision, technical expertise and financial strength to help meet the growing demand for renewable energy products around the world,” said Pinnacle chief executive officer Duncan Davies.

Just this year Pinnacle extended an existing contract past 2023 with Mitsubishi Corp., to sell 80,000 to 90,000 tonnes of pellets a year to be used at a biomass power plant in Japan.

The deal is subject to shareholder approval and also requires the approval of regulators and of the B.C. supreme court.

Already, a private equity firm called Oncap, which owns 36 per cent of Pinnacle has indicated it is in favour of the deal. Oncap acquired a majority stake in Pinnacle in 2011 and then took the company public in 2018 while continuing to hold a significant position.

A Canfor official said the pending deal should not affect its half ownership of the Houston plant.

“Canfor does not anticipate any changes to our joint venture participation in Houston pellet, and if the acquisition is approved by shareholders, we look forward to continuing our partnership in the venture with the Drax Group,” said Michelle Ward.

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

Just Posted

A health care worker prepares to test a Coastal GasLink field worker for COVID-19. (Coastal GasLink photo)
Coastal GasLink begins COVID screening of pipeline workers

Construction is once again ramping up following Northern Health approval of COVID management plan

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

(Black Press file photo)
Charges laid against two suspects in pre-Christmas home invasion

An 88-year-old woman was hospitalized after being bear-sprayed in the face Dec. 18, 2020

Liam and Tyler Spaans, (L-R), are two of the current lifeguards at the Houston Leisure Facility. (Houston Leisure Services file photo)
Leisure facility anticipates need for lifeguards

Has been challenged in the past

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

An investigation is underway after a man was shot and killed by Tofino RCMP in Opitsaht. (Black Press Media file photo)
Man shot and killed by RCMP near Tofino, police watchdog investigating

Investigation underway by Independent Investigations Office of British Columbia.

B.C. Supreme Court in Vancouver on Tuesday December 11, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C.’s compromise on in-person worship at three churches called ‘absolutely unacceptable’

Would allow outdoor services of 25 or less by Langley, Abbotsford and Chilliwack churches

Baldy Mountain Resort was shut down on Saturday after a fatal workplace accident. (Baldy Mountain picture)
Jasmine and Gwen Donaldson are part of the CAT team working to reduce stigma for marginalized groups in Campbell River. Photo by Marc Kitteringham, Campbell River Mirror
Jasmine’s story: Stigma can be the hardest hurdle for those overcoming addiction

Recovering B.C. addict says welcome, connection and community key for rebuilding after drug habit

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Pig races at the 145th annual Chilliwack Fair on Aug. 12, 2017. Monday, March 1, 2021 is Pig Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Feb. 28 to March 6

Pig Day, Canadian Bacon Day and Grammar Day are all coming up this week

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Most Read