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Zilkha Biomass Fuels I LLC completes U$59.8 million refinancing, will resume black pellet production

In the United States (US), Zilkha Biomass Fuels I LLC has announced the completion of a US$59.8 million refinancing of the Zilkha Biomass Selma LLC pellet mill operation located in Selma, Alabama. The funds will be used to recommission and place the mill back in operation to produce "Zilkha Black Pellets" for the global power industry as a direct substitute for coal.

Headquartered in Houston Texas (TX), Zilkha Biomass Fuels I LLC is a subsidiary of NextGen Black Pellets LLC, a company founded in 2016. According to a statement, the refinancing was completed on September 14, 2018.

The Selma mill will resume commercial operation of “Zilkha Black Pellets” in the first quarter of 2019 and is expected to produce 60 000 tonnes in the first year of operation. This is to be ramped up to 200 000 tonnes in the second year, and 240 000 tonnes in subsequent years. The company says that Zilkha’s black pellets have been successfully co-fired at rates up to 50 percent substitution for coal without changes to the processing equipment.

New capital will be used for new CAPEX projects and to provide working capital for the mill to build inventory for sale into the primary markets in Europe, Asia, Africa, and the Caribbean. The black pellets will be available for purchase and delivery in Q1/2019.

In addition, Zilkha Biomass Fuels I LLC says that it is seeking operators worldwide who will utilize the patented Zilkha Black Pellet technology in the US and abroad to supply the growing renewable energy markets.

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