UK-headed Drax Group, the world’s leading producer and user of sustainable biomass has announced that it is investing US$50 million to expand pellet production capacity at its Aliceville facility in Alabama (AL), the United States (US).
Situated within an attractive supply of wood and timber, Aliceville is well-positioned as a growing hub for sustainable forestry and the biomass industry.
The region boasts of a high concentration of existing sawmills that produce the residuals necessary to support sustainable wood pellet production.
We are greatly appreciative of the continued investment Drax has placed in Aliceville, which is a tremendous blessing for the economy of our community, the local citizens who will be employed at Drax, as well as our supporting area businesses. Although our community is rural, I am pleased with how we are utilizing our unique natural resources to help move our community forward in a dramatic way, said Aliceville Mayor Terrence Windham.
Increase production capacity
The US$50 million dollar investment at Drax’s Aliceville pellet facility will increase annual production capacity by nearly 50 percent, from 250 000 tonnes to 380 000 tonnes.
The expansion at the Aliceville plant allows Drax to increase production capacity in the state while further investing in the local community and creating more job opportunities for Alabama residents, said Matt White, EVP of North America Operations for Drax.
The expansion includes upgrades to existing systems as well as new truck dumps and pelletizer units, which will allow for an increase in the volume of sawmill residuals processed.
The additional capacity is expected to begin commissioning in 2024. Drax’s goal is to increase its global pellet production capacity from around 5 million tonnes to 8 million tonnes by 2030.
Together with our Demopolis plant, Aliceville plays a critical role in our ability to meet the growing global demand for wood pellets because it provides Europe and Asia with reliable, renewable electricity to help displace coal from their energy systems, said Matt White.
A recently published economic impact report showed that Drax could contribute more than US$260 million to Alabama’s economy in 2023, adding more than US$100 million to the state’s GDP.
