GCRE purchases, expands Louisiana pellet plant
Gulf Coast Renewable Energy closed on the acquisition of West Monroe, La.-based Bayou Wood Pellets LLC in mid-August. GCRE is making investments to expand the facility’s production capacity beyond its current capacity of 54,000 metric tons per year.
Construction is underway to increase the facility’s production capacity to 120,000 metric tons per year, said Westin Lovy of Bridge Lane Capital, a South Norwalk, Conn.-based asset management firm that provided funding for the acquisition and improvements.
The pellet plant will take in sawmill residue sourced from Louisiana, Arkansas and Mississippi as feedstock. The resulting pellets will be sold to overseas utility customers under a long-term offtake agreement.
In addition to the acquisition of the Bayou Wood Pellet plant, GCRE is also pursuing plans to develop three additional pellet plants in Mississippi, including a 320,000-metric-ton-per-year proposed plant in Copiah County, Miss.