Two pellet plants will be launched in the Southern Arkansas (USA) until the end of 2016
Work on putting the objectives into operation goes on schedule, to ensure the supply of pellets to Europe, transforming industrial power generation from coal to alternative fuels.
This statement was made by executives of Highland Pellets LLC (Pine Bluff) and Zilkha Biomass Energy (Monticello). companies. To date, the companies pass the licensing procedures, such as land acquisition and environmental permits required to enter Arkansas business rapidly developing branch of production of renewable energy.
According to statistics, in 2014 exports of US wood pellets to the EU increased by 40% compared with the 2013 year, from 3.2 million tons to 4.4 million tons. Thus, the United States became the world's leading exporter of wood biofuels, ahead of Canada.
Both companies are privately owned, with investors located outside the State, and are closely associated with Silicon Valley and Wall Street. In 2014 they announced their intention to use the wood resources of Arkansas, such as off-grade wood, dead, sick or flammable trees and unused forest stands in need of thinning.
July 30 Zilkha Biomass Energy company announced the plans for building pellet plant, which worth 90 million dollars in the city of Monticello; it will make integration into the electrical network easily by giving an alternative to electricity, which produced with using coal.
Less than a month after this statement Highland Pellets LLC company announced the construction of pellet factory in Pine Bluff with a capacity of 500,000 tons of pellets annually. In its press release, Highland Pellets LLC explained that an enterprise value of 130 million dollars will provide 35 direct jobs and 482 direct jobs are not that give local communities an annual profit of 86 million dollars.
Chairman of the of Board Highland Pellets LLC company Tom Riley said his company received a plot of land for its plant in Pine Bluff, but Arkansas management of environmental has still not issued a permit for air emissions (TV).
Both companies claim that their pellet plants will process a ton of wood waste pellets that are subsequently exported to the EU countries where they will be burned in power plants. But with the increasing demand for wood biofuel environmental activists ask more questions about the sustainability and feasibility of burning wood to produce electricity.
As the representative of the Arkansas Department for Environmental Protection Katherine Benenati said, companies are at different stages of getting TV and this is the biggest obstacle to the realization of their plans.
"The process of obtaining this certification is the key, and after that our company will not have obstacles. So we hope to enter the market before the end of 2016," said Mr. Riley. Highland Pellets LLC company filed an initial application for a TV in September 2014. But less than a month, the state government rejected it. A group of investors of the company, headed by Mr. Riley, a former senior managing director of Bearstearns Investment Company submitted a second application in January 2015. "We have received a request of Highland Pellets LLC and see it. We have 180 days for commitment," explained Ms. Benenati.
At the same time, the company Zilkha Biomass Energy first of May received approval from the State and now all interested parties have one month to submit their objections. Ms. Benenati explained that the final decision of the authorities will depend on the number of objections received, and their contents.
The management of both companies explained that their plans include the construction of plants at a distance of 50 miles of each other. Highland Pellets LLC company is planning to send 50 employees to the object, who will be engaged in the harvesting of 500,000 tons of raw material per year. But before that all permits must be obtained. However, it was stated that the representatives of local businesses and officials responsible for the economic development of the region, found out that this project is spectacular.
Also, Mr. Riley declared that despite the fact that the personnel of pellet plant will not meet high qualification requirements, it intends to hold a series of trainings for the workers. In addition, the local population is already familiar with the necessary techniques of harvesting and processing of timber.
Similar plans have been developed by Zilkha Biomass Energy company, which investor is a former Microsoft co-founder Paul Allen. Future production will be located in an area of 110 acres and will provide 52 jobs paying 15 to 18 dollars an hour.
Representatives of the companies are willing to sign contracts with European buyers interested as soon as possible after the entry into operation of plants.
