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Manufacturing

Drax opens seventh US pellet plant with £76m Alabama addition to global biomass supply chain

It is the realisation of a development that formed part of its Pinnacle Energy acquisition

Sawmill residues used to manufacture sustainable biomass wood pellets.(Image: Drax )

Drax Group has opened a new £76 million pellet plant in Alabama.

The 360,000 tonne production facility in Demopolis, Marengo County, will help meet growing demand for biomass in the º£½ÇÊÓÆµ, Europe and Asia.

A total of 60 direct jobs have been created, with 350 employed in construction.

Read more: Hull to host major event for firms seeking work on Drax's huge Net Zero project

Drax acquired the plant while in development as part of its acquisition of Canadian pellet producer Pinnacle Renewable Energy.

It held a 90 per cent stake in Alabama Pellets, with a plant at Aliceville having already been operational.

Pellets are produced from sawdust, shavings and chips, by-products from neighbouring Two Rivers Lumber Co sawmill - owner of the remaining 10 per cent stake.

Alabama Governor Kay Ivey said: “Drax’s wood pellet plant that’s being commissioned in Demopolis represents a major investment that will drive long-term economic growth and spark significant job creation in Marengo County. The opening of this facility is an exciting development for this rural region, and I look forward to seeing Drax develop new growth plans in Sweet Home Alabama.”