GCRE buys La. pellet plant
Gulf Coast Renewable Energy closed on the acquisition of West Monroe, La.-based Bayou Wood Pellets LLC on Aug. 15. According to GCRE, it is making significant investments to expand the facility’s production capacity.
Construction is already underway to increase the facility’s production capacity from 54,000 to 120,000 metric tons per year, said Westin Lovy of Bridge Lane Capital, a South Norwalk, Conn.-based asset management firm that provided funding for the acquisition and improvements.
The pellet plant will take in feedstock generated from sawmill residue sourced from Louisiana, Arkansas and Mississippi. The resulting pellets will be sold to overseas utility customers under a long-term offtake agreement.
In addition to the acquisition of the Bayou Wood Pellet plant, GCRE is also pursuing plans to develop three additional pellet plants in Mississippi, including a 320,000-metric-ton-per-year proposed plant in Copiah County, Miss. Regarding the company’s expansion plans, Lovy said GCRE and Bridge Lane Capital are actively seeking opportunities in not only pellet manufacturing, but also businesses upstream and downstream in the supply and delivery chain in order to serve the domestic and overseas markets.