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GCRE acquires Bayou Wood Pellets, plans expansion

By Erin Voegele | October 01, 2013

Gulf Coast Renewable Energy has announced the acquisition of West Monroe, La.-based Bayou Wood Pellets LLC. The company is also making significant investments to expand the facility’s production capacity, and plans to develop three additional plants in Mississippi.

According to information released by GCRE, the plant currently has the capacity to produce 54,000 metric tons per year of wood pellets. The company intends to expand production capacity to 120,000 metric tons per year. Pellets produced at the plant will be sold under a long-term offtake agreement to overseas utility customers. Funding for the acquisition and improvements was provided by Bridge Lane Capital, an asset management firm based in South Norwalk, Conn.

Westin Lovy of Bridge Lane Capital verified that the transaction closed on Aug. 15, and that construction is currently underway to expand the plant’s capacity. He said the expansion is scheduled to be complete by Jan. 30. Upon completion, the expanded facility will support 24 direct jobs and an estimated 72 indirect jobs in timber, transportation and supporting industries.

Information released by GCRE also specifies the company is working with officials in Copiah County, Miss., to develop a 320,000 metric ton per year pellet plant, with two additional plants planned in other Mississippi locations.

Regarding the company’s expansion plans, Lovy said GCRE and Bridge Lane Capital are actively seeking opportunities in not only pellet manufacturing, but also businesses upstream and downstream in the supply and delivery chain in order to serve the domestic and overseas markets.

According to GCRE, all feedstock used at the West Monroe facility will be generated from sawmill residue sourced from Louisiana, Arkansas and Mississippi that might otherwise be considered waste. The feedstock meets environmental sustainability requirements. 

 

 

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