Drax announces $50M expansion to Aliceville facility

By Drax | January 23, 2023

As global demand for biomass continues to surge, Drax has announced a $50 million expansion at its Aliceville, Alabama wood pellet plant.

Situated within an attractive supply of wood and timber, Aliceville is well-positioned as a growing hub for sustainable forestry and the biomass industry. The region boasts of a high concentration of existing sawmills that produce the residuals necessary to support sustainable wood pellet production.

“We are greatly appreciative for the continued investment Drax has placed in Aliceville, which is a tremendous blessing for the economy of our community, the local citizens who will be employed at Drax, as well as our supporting area businesses,” said Aliceville Mayor Terrence Windham. “Although our community is rural, I am pleased how we are utilizing our unique natural resources to help move our community forward in a dramatic way.”

The $50 million dollar investment at Drax’s Aliceville pellet facility will increase production capacity by nearly 50 percent, from 250,000 tons to 380,000 tons.

“The expansion at the Aliceville plant allows Drax to increase production capacity in the state while further investing in the local community and creating more job opportunities for Alabama residents,” said Matt White, executive vice president of North America operations for Drax.

The expansion includes upgrades to existing systems as well as new truck dumps and pelletizer units, which will allow for an increase in the amount of sawmill residuals processed. The additional capacity is expected to begin commissioning in 2024.

“Together with our Demopolis plant, Aliceville plays a critical role in our ability to meet the growing global demand for wood pellets because it provides Europe and Asia with reliable, renewable electricity to help displace coal from their energy systems,” said White.

Drax’s goal is to increase its global pellet production capacity from around 5 million tons to 8 million tons by 2030.

An economic impact report released in December showed that Drax could contribute more than $260 million to Alabama’s economy in 2023, adding more than $100 million to the state’s GDP.

Alabama residents interested in learning more and applying for a career at Drax can visit drax.com/us/careers for a complete list of available openings.