Pinnacle Renewable Energy has announced its subsidiary, Alabama Pellets, has signed an agreement with Alabama that provides Alabama Pellets with incentives for job creation under Alabama's Job Act Incentives program. Pinnacle holds a 70% interest in Alabama Pellets with The Westervelt Company and Two Rivers Lumber Co., LLC each holding 20% and 10%, respectively.
The incentives relate specifically to a new industrial wood pellet production facility that Alabama Pellets is constructing in Demopolis, Alabama with a planned capital investment of $95 million. The facility is expected to have an annual production volume of 360,000 metric tonnes per annum and will start initial industrial wood pellet production by mid-2021.
Chief Executive Officer of Pinnacle, Rob McCurdy, commented, "Pinnacle and Alabama Pellets have been part of the Alabama business landscape since October 2018 and are proud to be part of the economic growth of this community. Our commitment as a good corporate citizen in the communities where we operate is to think local, hire local, and use local vendors and contractors. The Alabama Job Act Incentives supports our approach to doing business and we are pleased to be part of the state's 'Made in Alabama' program."
Incentives for Alabama Pellets include a tax credit for job creation totaling $848,000 over 10 years, as well as an investment credit totaling $9.5 million spread over 10 years. The incentives are offered to businesses that provide benefit to the state and its citizens through positive economic impacts in the community and tax revenue to the state. In order to receive the wage incentive, Alabama Pellets' facility in Demopolis will target employing a minimum of 45 employees that earn an average hourly wage of $20.
"We're committed to helping create jobs in our state's rural areas through strategic economic development, and the plans by Pinnacle and Alabama Pellets to locate a facility in Demopolis is a positive development for Marengo County," said Greg Canfield, secretary of the Alabama Department of Commerce. "Alabama Pellets is making a major investment in this plant, which will drive economic growth in the region and spark the creation of direct and indirect jobs."