German company to open wood pellet factory in Urania

http://www.thetowntalk.com/article/20130418/BUSINESS/304180018/German-company-open-wood-pellet-factory-Urania?nclick_check=1

Apr 18, 2013
Written by Jeff Matthews

The world’s largest wood pellet plant is coming to one of the smallest towns in Central Louisiana.

German Pellets will begin work immediately on a $300 million plant in Urania that is expected to create 500 jobs, officials with the company and Central Louisiana Economic Development Alliance announced Wednesday. The plant is expected to be operational in the spring of 2014.


“We are ecstatic about the decision by German Pellets to locate in Urania,” said Rick Ranson, vice president-major employers for CLEDA. “German Pellets is a premier company and this is an historic announcement, not only for Urania and LaSalle Parish, but also the entire Central Louisiana region.”


“Pellet consumption worldwide is on the rise, especially in Europe,” said German Pellets Chief Executive Officer Peter Leibold. “This means that the construction of large production capacities is necessary.”


Demand for wood pellets from the European power plant market for the generation of electricity has risen sharply, according to a company release. There is also increasing demand for the product to generate heat for private consumers and larger scale users such as schools and hospitals.


Wood pellets are made from wood shavings and sawdust pressed into a cylindrical shape. The plant in Urania is expected to produce one million tons of pellets per year.


It’s the second major project recently announced in Central Louisiana involving the wood industry and renewable energy. Sundrop Fuels is building a plant near Alexandria that will convert wood waste and natural gas into gasoline.


CLEDA officials are hoping to see more in the future.

“There’s a lot of activity in that sector, so this is an important play for us,” said CLEDA President Jim Clinton. “Plus, it’s foreign direct investment. That’s what you always like to see, bringing in capital from outside the region.”


“I tell people wood is our oil,” Ranson said.

Founded in 2005, German Pellets is the leading manufacturer of wood pellets in Europe. Its first U.S. plant — in Woodville, Texas — has roughly half the capacity of the planned plant in Urania.