Louisiana, Texas sites for GmbH

Tuesday, December 11, the Louisiana Public Facilities Authority Board of Trustees approved financing for a facility in LaSalle Parish that will turn wood waste into pellets for use as renewable fuel for industrial processes.

Louisiana Pellets, Inc., an affiliate of German Pellets GmbH announced it will build a 393,000 square foot facility on LA Highway 125 in Urania. German Pellets GmbH is also in the process of building a 578,000 metric tons wood pellet mill in Woodville, Texas north of Port Arthur.

In addition to the pellet mill in Woodville, German Pellets GmbH is building five storage silos with a combined capacity of 75,000 metric tons at Port Arthur. The loading system will accommodate ships which can carry up to 70,000 metric tons of wood pellets. The first load of pellets is scheduled to be shipped to Britain in the second quarter of 2013.

The first incoming load of raw material in the form of round wood is scheduled in the first quarter of 2013 at Woodville.

The Woodville plant was originally announced in July 2011 with a start-up date in the third quarter of 2012.

The Louisiana Pellets, Inc. facility in Urania would create 80 direct jobs and 250 indirect jobs, with an annual payroll of $4.5 million. The LFPA approved the issuance of revenue bonds, not to exceed $300 million.

LPFA Board Chairman Guy Campbell III said in a released statement: "Urania is a community with a population of about 1,300 that has had a connection to the lumber industry and some of the nation's earliest reforestation practices since its beginnings more than 100 years ago. It's gratifying to help finance a project that's bringing environmentally friendly, lumber related jobs to the area."

Apparently, Louisiana Pellets, Inc. considered a location near Colfax on the Red River and the old Pineville Kraft facility before settling on the Urania location.

The Louisiana Public Facilities Authority is a self-supporting public trust and public corporation that issues both taxable and tax-exempt bonds to finance public and private projects throughout the state. The LPFA finances industrial and economic development projects, provides low-cost funding for hospitals and hospital equipment, universities and other educational facilities and other essential programs for state and local governmental units.

The LDPA does not receive any funds from the state for its operations.

Louisiana Wood Pellets, Inc. is a Delaware based, registered in Louisiana. Its principal mailing and business address is: C/O German Pellets GMB, AM Torney 2 A, Wismar, Germany 23970.

Currently, Canada and the US are the main pellet exporters for power plants in Europe. Each country has topped the 1 million annual tons of wood pellets exported annually. Greencircle Bioenergy, located in Cottondale, Florida has been exporting wood pellets to European power plants for several years from its 500,000 annual metric ton capacity pellet mill.