Astec Industries announces US $30 million pellet plant order Bioenergy International No 81, 5-2015 19 Global pellet major, German Pellets Group released its half-year report for 2015 as well as an update statement regarding its second US pellet facility in Urania, LA. According to the report the Group has expanded its sales volume in all market segments thus compensating the price downturn in the market. In the first six months of 2015, the Group’s overall result amounted to EUR 293.6 million up EUR 30 million on the same period 2014. – Our strategy for expanding sales is already reaping rewards now. Naturally, this makes us optimistic for the future”, said Peter H. Leibold, Managing Director of German Pellets GmbH. Urania phase one commissioned The expansion of US production capacity also contributed to the group result in the first half of 2015 with Woodville, TX running at full capacity and the complete commissioning of phase one of its Urania, LA plant. Construction works for phase two at Urania, which will double the plant’s annual capacity from 578 000 tonnes to 1.156 million tonnes have also begun with financing for the capacity increase raised in full. – We are delighted at the fast realisation of the expansion of our second plant in the US and, hence, the increased production, said Leibold in a statement. US-based Astec Industries, Inc., a manufacturer of specialised equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing industries, has announced it has entered into an agreement and received a related downpayment to build, deliver and install the first production line of a new turnkey wood pellet production facility. According to the announcement the US$30 million agreement is with Highland Pellets, LLC for the first line of its planned 600 000 tonne per annum pellet plant in Pine Bluff, Arkansas. The deal, which is not being financed by Astec, includes a no-obligation option for Highland to add additional production lines, related equipment and installation services worth another US$113 million. Astec expects to deliver the first production line and related equipment no later than early 2016. – We are pleased to announce this US$30 million order. Highland Pellets has been great to work with on this agreement and we look forward to a long-term relationship with them, said Benjamin G. Brock, CEO, Astec Industries in a statement. BI81/4995/AS German Pellets to double capacity at Urania facility The report notes that the company benefited “even more strongly” from more favourable production costs in the US. Furthermore “substantial steps” were also undertaken in bringing about the planned construction of sawmilling and sorting capacities at the Woodville, TX site with work towards getting these resources operational proceeding. The timber quantities to be produced there have already been able to be sold in the US dollar currency area on a long-term basis. For the future, German Pellets is also planning to sell products on the US market through working with established-name partners. Power plant operator? In Europe the report also highlighted that a new sales subsidiary has been formed in France “in order to do justice” to the growing market share that the German Pellets Group has on the French market. The report also revealed that German Pellets is at a “well-advanced stage of negotiations” with the German energy provider E.ON regarding the takeover of a coal-fuelled power-station in Belgium. A new company, German Pellets Holding Belgium NV is being formed for this purpose and the aim of the venture is to convert the plant from coal to wood pellets. Commissioned at the beginning of 2015 FLLC Swoods Export new 30 000 tonne per annum ENPlus certified pellet plant in Borisov, Belarus is reported to have reached its design capacity. According to a statement from AS Hekotek, the turnkey technology providers that built the plant, the new facility ensures economical utilization of wood processing residues from the sawmill co-located on the site. In Belarus, as well as in Russia, utilization of sawmill residues has posed a bottleneck with landfill disposal a common option. BI81/4979/AS Belarusian pellet plant reaches design capacity BI81/4999/AS Pellets Photo courtesy German Pellets US-based pellet producer Rentech recently released its Q2-2015 results with updates on its two Canadian pellet plants, Atikokan and Wawa, which have been experiencing start-up issues. According to the report both facilities are producing pellets. Atikokan has completed commissioning and is in ramp-up phase. However transformer failure along with some material handling issues has meant reduced production rates. – Atikokan may still reach full capacity in February 2016; however, the timing could shift by several months depending on the degree of modifications needed to correct the material handling equipment issues and any other possible issues that may arise during ramp-up, said Keith Forman, President and CEO of Rentech. For Wawa the situation is more pressing. Though most of the equipment has been commissioned and the plant is producing a limited quantity of pellets Rentech has had to cancel significant supply volume commitments incurring financial penalties as well as revenue loss. – We will need to modify and replace the log in-feed equipment and a significant portion of conveyance systems at the Wawa plant this fall and into next year to address the construction flaws we discovered during ramp-up, said Forman adding that taking into account the time required to remedy the situation and assuming no further issues appear full capacity is likely to be reached in the latter half of 2016. BI81/5017/AS Start-up setbacks delay Rentech deliveries
Bioenergy no 5 September 2015
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