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Released August 22, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--While the biomass-fired power sector in the U.S. pales in comparison to other forms of renewable energy such as wind, solar and hydropower, a sizeable market has grown for fuel pellet production. Many of these plants are geared toward the export of pellets, particularly to Europe. Industrial Info is tracking more than $2 billion worth active projects related to fuel pellet production in the U.S. Nearly $900 million worth of this is located in the Southeast market region, where timber resources are more prevalent, and the Pulp, Paper & Wood Industry also is strong.

A good example of vertical integration between fuel pellet supply and power generation comes from Drax Group plc (Selby, England). A few years ago, Drax completed conversion of a coal-fired power plant in the U.K. to run on biomass in the form of fuel pellets. The Drax Power Station in North Yorkshire now provides 11% of the U.K.'s renewable power, according to a company website. With a capacity of nearly 2,600 megawatts (MW), the plant provides more renewable energy than any other single source in the U.K.

In the sourcing of biomass fuel pellets to use at the plant, Drax is in the fuel pellet business itself and is expanding its pellet-production plant in Alabama. The project involves adding new pelletizers and performing upgrades to existing systems to increase production capacity by approximately 50% to 380,000 metric tons per year of fuel pellets. The project is expected to be completed next summer. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can click here to learn more about the project.

One of the largest fuel pellet projects in Louisiana involves the production of torrified biofuel. In the torrification process, raw biomass is heated to between 250 and 300 degrees Celsius in a sealed, oxygenless environment. The resulting biocoal is then densified and can be put into different forms such as pellets. Biomass Secure Power Incorporated (Abbotsford, British Columbia) is in the planning process for a torrified fuel pellet plant in Natchitoches, Louisiana. The first phase of construction, which is expected to kick off toward the end of this year, involves establishing three pellet production lines, each with a nominal capacity of 80,000 tons per year. The first phase is expected to begin operations in 2025.

Upon completion of the first phase of construction, Biomass Secure Power has plans to begin a second phase of construction, adding another 320,000 tons per year of torrified pellet production, followed by a possible third phase that would bring total fuel pellet production to more than 1 million pounds per year. Subscribers can click here for related project reports.

One of the largest fuel pellets plants presently under construction is in Williams, California, about 60 miles northeast of Sacramento. Aymium Incorporated (Williams) kicked off construction of its brownfield plant earlier this year. When completed, the facility will be able to process biomass feedstock such as orchard trimmings and forest debris into up to 250,000 tons per year of biocarbon pellets. In a nod toward California's renewable energy endeavors, the facility will use self-generated biogas for process energy and could provide up to 10 MW of power to the grid. The project is expected to be completed early next year. Subscribers can click here for more information.

One of the world's largest fuel-pellet producers, Enviva Incorporated (NYSE:EVA) (Bethesda, Maryland), is establishing what will be its largest production facility in Epes, Alabama. Construction kicked off last summer, and upon completion, which is expected in the coming months, the facility will be able to process a mix of softwood and mill residuals into 700,000 metric tons of pellets annually. Production eventually could be increased to more than 1 million tons per year. Subscribers can click here for more details.

Other active fuel pellets projects include Delta Biofuel LLC's (Rye, New York) project in Jeanerette, Louisiana, which is expected to break ground soon. The facility will capitalize on waste from the state's sugar milling industry, pulling in waste bagasse from sugar mills in three Louisiana parishes to convert into 340,000 tons per year of fuel pellets. The plant is expected to begin operating in 2025. Subscribers can click here to learn more about the project.

Subscribers to Industrial Info's GMI Project Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).

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