German Pellets to double capacity at US plant

OREANDA-NEWS. July 30, 2015. Wood pellet producer German Pellets has started construction of the second phase of its plant at Urania in the southern US state of Louisiana. The expansion will double the capacity of the plant to 1.2mn t/yr.

Financing for the second phase has been raised in full and supply agreements are in place for the new capacity, German Pellets said. The expansion is due to be completed in the second quarter of 2016.

The company has completed the commissioning of the 578,000 t/yr first phase of the plant, and the first shipment of pellets is being loaded at Port Arthur, Texas, for export to Europe. German Pellets will explore potential other markets, including Asia-Pacific, the company said. The pellets produced are for residential and industrial markets.

On completion of the second phase at the Louisiana plant, German Pellets will have a nameplate capacity in the US of around 1.7mn t/yr, with a planned utilisation of about 87pc.