Drax Biomass shelves plans for Pike BioEnergy pellet plant

By Erin Voegele | January 28, 2016

Drax Biomass has ceased development of a proposed pellet plant that was under development in Pike County, Mississippi. The project was being developed under the name Pike BioEnergy LLC.

Waste Sterling, executive director of Pike County Economic Development, explained an option to develop the project expired at the end of 2015. Development of the project had be under consideration since at least 2014.

According to David Malkin, director of communications and policy for Drax Biomass, the company made the decision not to proceed with the project late last year. “After a careful review of market conditions, Drax Biomass decided in late 2015 not to proceed with the proposed Pike BioEnergy project,” he said. “Several factors, including surplus capacity in the wood pellet market, led us to conclude that it was not the right time to invest in a third pellet plant.  We are confident the Group can source sufficient pellet supply on the open market, and we will continue to look for new investment opportunities across the biomass energy value chain.”