Apr 27 2017
British Drax utility and pellet producer has complete the purchase of the assets of the earlier German Pellets owned 450 000 t/y Louisiana Pellets production facility in Urania, Lousiana, USA. This following a court hearing. The auction price was $35,4mn. Drax is also interested in the other earlier american German Pellets plant Texas Pellets but this auction has been delayed without information of a new date.
Dorothy Thompson, Chief Executive Officer of Drax Group, said:
“The deal forms part of our plan to significantly increase our capability to manufacture high quality compressed wood pellets and increase self-supply to Drax Power Station.
“Upgrading half the Power Station to use sustainable wood pellets has resulted in Drax producing 16% of the UK’s renewable electricity and with the right conditions we aim to do more.”
In Urania, Louisiana, the Lousiana Pellets in the summer restarted production at a rate of 1000 t/day. It halted production in december 2015 before it did apply for chapter 11 bankruptcy in February 2016. The Texas Pellets plant in Woodville, was never halted and is producing at capacity, also after it bankruptcy in May. Texas Pellets also owns and operate a storage facility and shipping terminal in Port Arthur.
In Amite, Gloster, Missisippi, and in Morehouse Lousiana both in the USA Drax is also running production plants both with a capacity of 450 000 t/y. In Baton Rouge they operate a port together with Host Terminals.
Drax is the largest power station the UK and also the world largest pellet user and burn pellets for power in 3 of 6 660 MW units all located in Selby, UK.