Westervelt Sells Pellet Interests
Drax is acquiring Westervelt’s 20% minority interest in Alabama Pellets, LLC—the joint venture that owns pellet plants in Demopolis and Aliceville, Ala.—for $29.7 million. The acquisition increases Drax’s interest in Alabama Pellets to 90% and provides Drax with economic control over a further 130,000 tonnes of pellet production capacity per year.
Drax gained majority control of the two pellet plants when it purchased Pinnacle Renewable Energy earlier this year. Westervelt, a substantial timberlands owner and operator of two sawmills, had originally built the Aliceville plant and subsequently sold the majority control of it to Pinnacle, while maintaining a 20% arrangement with Pinnacle in both the Aliceville and Demopolis plants, which carried over when Drax purchased Pinnacle.
Drax has been in discussions with Alabama Pellets joint venture partners regarding future working relationships, including their minority interests. The remaining joint venture partner, Two Rivers Lumber Co., LLC, still holds a 10% economic interest.
A proposed 450,000 metric tons per year industrial wood pellet mill to be built in Adel, Ga. is still an active project with nearly all of the pieces—including financing, equipment selection and air quality permit—in place, and construction expected to begin at mid-year 2022, according to Craig Whitlock, founder and…
Forest Service Backs Out Of Awarding Phase 2 Arizona Forests Restoration Contract; Uncertainties Persist For Novo Power
Anxious bidders for the Phase 2 contract that’s part of the federal 4 Forests Restoration Initiative (4FRI) seeking to treat and improve forest health conditions on more than 2.5 million acres across four Arizona national forests were told to wait a while longer after U.S. Forest Service (FS) officials abruptly…
Construction has started on Drax’s second satellite industrial wood pellet plant in Arkansas, this one in Russellville, Pope County, in northwestern Arkansas. Commercial operations are expected to begin at the plant in 2022. The move is part of a $40 million investment by Drax in the state…
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