Drax Group has opened a 360,000-ton pellet production facility in Demopolis, Marengo County, Alabama. The new facility is expected to help meet the growing demand for biomass in the UK, Europe, and Asia.
Drax acquired the plant, which was already under construction, as part of its acquisition of Pinnacle Renewable Energy, a Canadian pellet producer. The company also held a 90% stake in Alabama Pellets, with a plant at Aliceville having already been operational.
Pellets are produced from sawdust, shavings, and chips—by-products from neighboring Two Rivers Lumber Co sawmill (owner of the remaining 10% stake).
Commenting on the new pellet plant, Alabama Gov. 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.”
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.