Pinnacle Renewable Energy has been granted approval by the Prince Rupert Port Authority to build a $42 million marine terminal to ship wood pellets overseas.
Pinnacle's Westview Terminal Redevelopment project has cleared an environmental review for the new terminal, which will have a capacity to move up to two million tonnes of wood pellets annually.
"There's still a couple of small items to be ticked off, but this was the major condition precedent to being able to move ahead," Pinnacle COO Leroy Reitsma told Business in Vancouver.
"This is a big step for us, as a company. It really opens the door to us being able to expand our production capability through that northwest corridor."
The assessment was conducted under the Canada Port Authority Environmental Assessment Regulations (CPAEAR) and included Environment Canada, Fisheries and Oceans Canada and three First Nations – the Lax Kwalaams, Metlakatla and Gitxaala.
"PRPA acknowledges the feedback and concerns expressed by some local residents regarding land use management in the inner harbour adjacent to CN's downtown railyard," said port authority spokesman Ken Veldman.
"However, we believe we can strike a balance between creating the economic opportunity a growing port represents and enhancing the livability of Prince Rupert through improvements to public access to the waterfront. PRPA is committed to working with the City of Prince Rupert to this end."
The project is expected to generate 90,000 hours of construction work and up to 24 permanent jobs in the new terminal's operations.
Pinnacle uses wood waste from logging and sawmills to make wood pellets that can be burned as an alternative to fossil fuels such as coal. The major markets for the pellets are Europe, South Korea and Japan.
Pinnacle produces 1.25 million tonnes of wood pellets annually. It currently ships its product through Vancouver ports. Proximity to Pinnacles' six plants in the B.C. interior, better rail links and access to Panamax tankers in Prince Rupert all make it more economical to ship through the northern route.
Reitsma said he expects construction of the new terminal to start before the end of the year, with completion within about one year.
