US biomass producer Zilkha Biomass expects its first large-scale commercial pellet plant to be operational by late 2013, the company has told Argus.
Zilkha acquired a 500,000 t/yr regular “white” pellet plant in Selma, Alabama, two years ago when the previous owners failed to make the business viable. Zilkha will adapt the plant to produce 275,000 t/yr of “Zilkha Black” pellets.
“We have about a year’s worth of work once the offtake agreements for the plant have been finalised,” Zilkha vice-president for business development Larry Weick told Argus. “So we are looking at a late-2013 start-up. The previous plant was not successful due to several factors, but Zilkha is confident that operating the plant at 275,000 t/yr, well below the original design capacity of 500,000 t/yr, will be economically viable.”