Drax Group has opened a new £76 million pellet plant in Alabama.
The 360,000 tonne production facility in Demopolis, Marengo County, will help meet growing demand for biomass in the UK, Europe and Asia.
A total of 60 direct jobs have been created, with 350 employed in construction.
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Drax acquired the plant while in development as part of its acquisition of Canadian pellet producer Pinnacle Renewable Energy.
It held a 90 per cent stake in Alabama Pellets, with a plant at Aliceville having already been operational.
Pellets are produced from sawdust, shavings and chips, by-products from neighbouring Two Rivers Lumber Co sawmill - owner of the remaining 10 per cent stake.
Alabama Governor Kay Ivey said: “Drax’s wood pellet plant that’s being commissioned in Demopolis represents a major investment that will drive long-term economic growth and spark significant job creation in Marengo County. The opening of this facility is an exciting development for this rural region, and I look forward to seeing Drax develop new growth plans in Sweet Home Alabama.”
Pellets will be loaded onto river barges and transported to the port at Mobile, for export.
It is the seventh plant now operational in the US south, as Drax displaces coal with biomass sourced from sustainably managed working forests.
It is also bringing forward carbon capture technology to clean up emissions from the power generating process when the pellets are fired.
Drax chief executive Will Gardiner marked the opening with a significant community donation.
He said: “By developing these pellet plants Drax has created 120 jobs in Alabama, whilst supporting many more throughout our supply chains in the state.
“I believe it’s important to support the communities where we operate and so as well as opening the Demopolis pellet mill, I’m also very pleased to announce the donation of $10,000 to the Demopolis City Schools Foundation, which will help ensure all children have access to an excellent education. I look forward to Drax continuing to work with the local community.”
The North Yorkshire-headquartered energy giant is the world’s leading producer and user of biomass.
It has invested hundreds of millions of pounds in the infrastructure to support the supply chain, including the world's largest port reception facilities on the Humber, at Immingham - feeding the power station direct, to provide a base load of between 5 per cent and six per cent of the UK's electricity need.
