RWE to Build World's Largest Biomass Pellet Plant in Waycross, Ga.

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RWE Innogy, the renewable energies company of the RWE Group, Germany, reports that it will build a factory to produce biomass pellets in Waycross, Ga., USA. The plant will have an annual production capacity of 750,000 metric tons, making it the biggest and most modern of its type in the world. The project will be carried out in collaboration with Sweden-based BMC Management AB, which specializes in the development of biomass manufacturing solutions. The pellets will be used in pure biomass power plants as well as for the co-firing of coal and biomass.

The pellet plant, currently scheduled to startup in 2011, will cost approximately EUR 120 million. Andritz Feed & Biofuel, Germany, will supply a debarking line, a chip handling system, as well as hammer and pellet mills, with a total order value of about EUR 40 million.

The biomass pellets will initially be burned in the existing power plants of Amer in the Netherlands, where currently already up to 30% of the hard coal has been replaced by solid biomass, mainly wood pellets. The large volume of biomass from Georgia will also help RWE achieve its goal of expanding this co-firing to up to 50%. The pellets will be shipped to Europe from the port of Savannah. A long-term transport contract has been concluded with one of the world's largest shipping companies in the dry goods sector, Dampskibselskabet NORDEN A/S, Denmark.