New company to bring $25 million wood pellet plant to George County

http://blog.gulflive.com/mississippi-press-news/2013/03/new_company_to_bring_25_millio.html

By April M. Havens | gulflive.com
on March 04, 2013 at 10:04 AM, updated March 04, 2013 at 11:51 AM

LUCEDALE, Mississippi -- Gulf Coast Renewable Energy LLC plans to bring a $25 million wood pellet manufacturing facility to George County's industrial park, company officials announced Monday at the Board of Supervisors meeting.

The project will create 28 new jobs and 144 indirect jobs, company Vice President for Engineering Gary Ogle said.

It will produce about 160,000 metric tons of pellets per year, Ogle said, and the company also plans to double production within the next 3 years.

GCRE, a new company, will produce biomass for sale to European utilities, which will mix the pellets with coal to reduce their carbon emissions.

Offtake agreements are in place, mostly with utility companies in the United Kingdom, said Economic Development and Communication Director Ken Flanagan.

The plant should be producing pellets by the fourth quarter of 2014, Ogle said, and will take up to 14 months for construction.

"The timeline's getting tight," he told supervisors.

The company is buying from Mississippi Export Railroad about 40 acres that sit just south of Vulcan Materials on Industrial Road.

The company will tie into the existing railroad spur, and about 3 railroad cars of pellets will be sent to the port in Theodore, Ala., every 2 to 3 days, Flanagan said.

Ogle asked supervisors for help building an access road to the site and said he will work with Mississippi Power and the county for assistance with utilities and connections.

"We're glad y'all chose us," board President Kelly Wright said, noting the company represents "the type of growth we're looking to get."

Ogle told him, "George County always felt right from the beginning."

Ogle has experience building at least 3 wood pellet facilities over the last 10 years -- 1 each in Georgia, Louisiana and Arkansas -- but this is the first under the new company, Flanagan said.

The pellets are made from a mix of soft and hard woods, including long and scrap timber. There is minimal waste in the process, as even the removed bark is used to fire the wood driers.

Flanagan said the facility will be a good fit for George County.

"It's an emerging energy business, not a smoke stack driven business," he said. "And it's a good step in showing what our industrial park has to offer, including highway access, a rail spur and a workforce that understands hard work."