Confluence Energy acquisition nearly doubles pellet capacity

By Anna Simet | March 21, 2013

Kremmling, Colo.-based Confluence Energy has acquired certain assets of Rocky Mountain Pellet in Walden, Colo., a transaction that will nearly double the company’s current capacity of 100,000 tons.

Both facilities, which are about 60 miles apart, began production in 2008. Since then, both have sourced pine beetle-killed wood as feedstock, and Confluence Energy has a 10-year feedstock materials contract with the U.S. Forest Service, which was awarded last December.

The acquisition, according to Confluence Energy, includes one building on approximately 90 acres on of land, plus all fixed and mobile assets. With the completion of the deal, Confluence Energy gains facilities housing four pellet presses with the capacity to produce 120,000 tons of wood pellets annually. 

The company obtained an undisclosed amount of funding through an Industrial Revenue Bond for the acquisition, and loan specifics were also undisclosed.

Confluence Energy CEO Mark Mathis said the acquired plant should be fully operational later this quarter, after some minor modifications are completed.