Power giant Drax is further enhancing its biomass supply with the construction of three new pellet plants in the US.
Sawmill residues will be used to produce 120,000 tonnes of the energy feedstock annually in Arkansas, in a £28.7 million investment.
Collated and shipped to the Humber from established port facilities Stateside, it follows the recent acquisition of substantial operations in Canada and the US, and early established plants following the initial switch to coal.
Work begins in Leola, Grant County, later this month, with commissioning at West Fraser sawmill anticipated in October.
It is expected to produce around 40,000 tonnes of sustainable biomass pellets a year. A total of 30 new jobs will be created.
The development of the ‘satellite’ pellet plants is part of Drax’s strategy to increase biomass self-supply to five million tonnes by 2027, improving supply chain resilience while reducing pellet costs.
Will Gardiner, Drax Group chief executive, said: “By building these new pellet plants Drax is bringing jobs and opportunities to rural communities in Arkansas, boosting the state’s post-Covid economic recovery.
“Through this investment, Arkansas will play an important role in combating climate change, supporting Drax to increase the amount of sustainable biomass we produce as part of our plans to pioneer bioenergy with carbon capture and storage. By using sustainable biomass, we have displaced coal-fired power generation, reduced carbon emissions and provided renewable electricity for millions of homes and businesses in the UK.”
“Drax’s ambitious company vision combined with the renowned tenacity and loyalty of Arkansans make this partnership an excellent match,” governor of the sourthen state, Asa Hutchinson, said.
“I am confident that this investment will benefit both the company and our communities for years to come.”
Co-locating the pellet facilities with sawmills brings lower infrastructure, operational, and transportation costs, Drax said.
It now owns and has interests in 17 other pellet plants and development projects across the Atlantic.
