Four sugar mills will supply Delta Biofuels with residual sugarcane fiber, or bagasse, to produce the pellets at the location.
Renewable fuel firm Delta Biofuel is evaluating a location in Louisiana to open a new $70 million wood pellet plant, Louisiana Gov. John Bel Edwards and the firm’s CEO Philip Keating announced Monday. The company is considering Iberia Parish, LA as the location for the planned facility.
If the company selects the site, the plant will make biomass fuel pellets from residual sugarcane fiber, also known as bagasse. The project will also create 126 new direct jobs with an average salary of $62,500 plus benefits.
“Renewable energy is a key component in reaching environmental protection targets, and Louisiana looks forward to welcoming the latest renewable fuel investment, Delta Biofuel,” Gov. Edwards said in a release. “Working in tandem with our sugar mills, Delta plans to turn previously discarded waste into a source of energy.”
The company said it has locked down long-term supplies of feedstock bagasse. Pellets made from the material can be used with traditional industrial wood pellets in power generation applications. Bagasse pellets are cheaper and can offer a greater reduction of greenhouse gases (GHG) compared to their wood-based alternatives, according to Delta Biofuel.
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