Zilkha closes on financing package for Alabama plant

By Staff | September 23, 2013

Zilkha Biomass Fuels closed on an $18.8 million finance package in August to convert the former Dixie Pellet plant in Selma, Ala., to produce its waterproof Zilhka Black Pellets.  The company acquired the idle facility in 2010 and will use the financing to renovate and retrofit the plant to produce 275,000 tons of Black Pellets per year.

The Dixie Pellet plant operated for less than two years before closing. The plant features 15 pellet mills, as well as coolers, dryers, conveyers and loading facilities.

Amcref Community Capital announced the closing. As the project’s sole federal and Alabama State New Markets Tax Credit allocate, Amcref was able to raise investments from U.S. bank and Stonehedge and attract other funding for the project. 

Unlike traditional compressed pellets, the Zilkha Biomass Pellet is waterproof and can be transported and stored outside like coal. The company’s first Black Pellet plant is located in Crockett, Texas. The 40,000-ton per-year facility began operations in 2010.