Wednesday, 17 April 2013 17:29

German Pellets to Build Second US Pellet Plant

German Pellets is further expanding its production capacities in North America. In Urania, a town in northern Louisiana, German Pellets will soon begin construction work on a new pellet production facility. The output will be about 1 million tonnes of wood pellets per year. Urania will be the German Pellets Group’s second North American site. In April a plant will open for production in Woodville, Texas.  

“Once again, we have chosen a site with well-established wood supplies and logistics,” said Peter Leibold, manager of the German Pellets Group. Until a few years ago Urania had been an important location for the wood-based panel industry. The US company Georgia Pacific had produced particleboard and other products at this site. Supply infrastructure and other infrastructure, including a railway siding, are already in place. Construction on the new plant will begin soon.

The decisive factor for the choice of location was the availability of raw materials in this densely forested region, where the annual timber increment is significantly higher than in Germany owing to the subtropical climate.  

The forestry industry is the second largest employer in the well-wooded state of Louisiana. The forests are managed sustainably. The new German Pellets production facility in Urania will create some 500 jobs in the region, both directly and indirectly. 

German Pellets will produce one million tonnes of wood pellets per year in Urania, twice as much as in its first US plant in Woodville, Texas. “Pellet consumption worldwide is on the rise, especially in Europe. This means that the construction of large production capacities is necessary,” said German Pellets CEO Peter Leibold. The demand from the European power plant market for the production of heat and electricity from wood pellets has risen sharply. There is also an increasing demand for wood pellets among private consumers and large-scale users, for example for supplying heat to hospitals, schools, commercial buildings and industrial facilities.  

For the transport of wood pellets from the Urania and Woodville sites to Europe, German Pellets will be using the harbour of Port Arthur on the Gulf of Mexico. At the deep-water port, German Pellets operates storage and loading systems.

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