Company to build $124 million wood waste pellet plant at Louisiana Port
A new company, called Point Bio Energy, LLC,
is developing a $124 million wood pellet project at the Port
of Greater Baton Rouge in Louisiana.
The plant, which plans to begin deliveries late in 2011 is expected
to produce 450,000 metric tons of pellets. Company officials
boast of the site’s ideal location to shipping and international
markets and said it has negotiated letters of intent with local
feedstock suppliers and a European buyer at attractive terms.
Point Bio Energy CEO Bill New said renewable energy requirements
in the European Union are driving demand for the wood pellets,
which power plants burn as fuel. Wood pellets provide roughly
the same amount of energy as low-grade coal and can be burned
in coal-fired power plants. New said that European demand for
wood pellets, now around 8 million tons per year, is expected
to double or triple over the next decade. Shaw Capital, Inc.
and LaPointe Partners are helping to finance the project.
Point Bio Energy, LLC is developing a wood pellet project at
the Port of Greater Baton Rouge in Louisiana with the assistance
of Shaw Capital, Inc. and LaPointe Partners.
Wood pellets consist of debarked, dried, unitized, compacted
and pelletized wood that is suitable to be burned as a green
fuel. The 400,000 metric ton per year wood pellet facility will
receive the feedstock for the plant from the underutilized wood
basket in the Baton Rouge area as well as by barge from the Mississippi
River, Atchafalaya River, Red River, and the Intracoastal Waterway.
Point has negotiated letters of intent with local feedstock suppliers
and a European buyer at attractive terms. Point has also gone
through an extensive technology and EPC selection process to
enable utilization of proven state-of-the art equipment working
synergistically throughout the facility. The company will have
the storage and loading capabilities at the existing deepwater
port for ocean going ships delivering the pellets to both European
power generators and domestic customers.
Construction is expected to start in the third quarter of 2010
and commercial pellet manufacturing operations are expected to
commence in the last quarter of 2011.
The site provides superior logistical flexibility with truck,
rail, barge and Panamax vessel access. The land secured at the
Port has existing roadways with direct access to major transportation
arteries, unit train rail capacity, deep water and barge docks,
fire water protection system, weight scales, port cranes, security,
drinking water, natural gas and power. By being located directly
on a deepwater port, Point has a cost advantage to other projects
of $10 to $25 per ton due to the avoidance of double-handling
of the wood pellets.
The European wood pellet market is well established with existing
and expanding power generators aggressively seeking new sources
of fuel to meet renewable fuel mandates. The European market
for fuel pellets was approximately 7 million metric ton per year
in 2007 and 9.5 million ton in 2008. It is expected to continue
to grow by 25 to 30 percent per year in the coming years with
large users paying approximately $190 per ton CIF at North European
The Company considers the permitting for the wood pellet operations
at the Port to be streamlined and believes that minor source
air permits can be secured for the project on a timely basis
without public hearings.
Utilizing an experience engineering and construction contractor
along with the proven wood pellet technologies that will be used
for the facility, which are already used in many other plants
in operation today minimizes the technology risks.
Experienced Management Team. The senior management team has over
100 years of combined experience in forest products, biomass
processing and large capital projects. The team has significant
experience with international sales and distribution of wood
and fiber products.
Feedstock Advantage. The Plant will obtain sustainable harvested
round wood as the feedstock for the wood pellet plant from land
located close to the deepwater production facility and will also
be able to take delivery of wood delivered by barge from a number
of locations on the Mississippi River, Atchafalaya River, Red
River, and Intracoastal Waterway through existing barge unloading