Drax to expand US pellet production

September 18, 2014

BY Staff

Drax Biomass, a subsidiary of the Drax Group plc, currently has pellet plants under development in Bastrop, Louisiana, and Gloster, Mississippi, along with an export facility in Baton Rouge, Louisiana. During its 2013 investor call in February, the company revealed plans to develop up to 2 million tons of additional pellet capacity, primarily in the U.S. During a separate investor call in July, Dorothy Thompson, chief executive of Drax, noted the company plans to expedite development of a third pellet plant that would feed into the port operation in Baton Rouge, and indicated a similar setup could be under development on the East Coast.

Recent announcements in South Carolina and Mississippi show the company is moving forward with those plans. Documents recently filed with the Mississippi Department of Environmental Quality state that a unit of Drax is planning to build a pellet plant near Magnolia, Mississippi. The project, proposed under the title Pike BioEnergy LLC, would be located on a 103-acre site.  In addition, Abbeville County, South Carolina, has passed an ordinance that would allow Drax Biomass an option to purchase a 119-acre tract of land for the development of a new pellet plant.

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