Drax Group is ramping up to full production at Leola – the first of three new satellite pellet plants it plans for Arkansas.
Matt White, Drax Executive Vice President, Pellet Operations said: “Drax has made excellent progress in delivering our $40 million investment in Arkansas, with Leola – the first of three planned satellite pellet plants – now in operation.
“The investments we’re making will bring 30 direct jobs and many more indirect jobs and opportunities to rural communities in Arkansas alongside supporting international efforts to tackle climate change. These plants support Drax’s plans to develop bioenergy with carbon capture and storage – a vital negative emissions technology that will be needed around the world to tackle the climate emergency.”
The three satellite plants in Arkansas are expected to produce a total of around 120,000 tonnes of sustainable biomass pellets a year from sawmill residues. This supports Drax’s plans to double its pellet production capacity to 8 million tonnes by 2030 to meet its own requirements, as well as its customers’ needs in Europe and Asia, amid an expected increase in global demand for the low-carbon fuel.
The satellite plants are located near sawmills, so they can use the sawdust and other by-products produced when timber is processed, to make the pellets. Siting the pellet facilities near sawmills reduces infrastructure, operational, and transportation costs.
Construction of the second Arkansas satellite plant in Russellville, Pope County is underway with commissioning expected this year. Drax is continuing to develop plans for a third plant.
Drax Group is the world’s leading producer and user of sustainable biomass.