Briquette Plant - Natchitoches, Louisiana, USA - Phase 1 = 240,000 t/yr.
In 2012 the Company was approached by Louisiana Economic Development (LED) to determine if Biomass Secure Power had an interest in building a pellet plant in their state. LED has presented BSPI with a very attractive package which includes $26.3 million of estimated benefits if we locate a plant in Louisiana. It was proposed that the pellet plant be built within the confines of the Port of Natchitoches.
As a result of a comprehensive assessment of the business opportunity presented by a project at Natchitoches Port we have decided to proceed with the development of a facility in Louisiana. We have completed the design and basic engineering work for the building of the proposed torrefied biomass briquettes plant. The Company has secured a lease of 75 acres of land upon which phase 1 of the proposed plant will be located.
In addition to the proposed plant in Natchitoches we propose to develop a storage facility and chipping plant at the Port of Shreveport on the Red River. This facility will be constructed on a 30 acre site that will store logs prior to chipping.
We have completed the design and basic engineering work for the building of the proposed torrefied biomass briquettes plant. We plan to sell the torrefied biomass briquettes to power producers in Europe and Asia who require a sustainable substitute for coal.
Total construction costs for Phase I is estimated to be $49,200,000. Upon completion of Phase I the plant will have a production capacity of one million tones. Projected gross income of the plant is expected to be approximately $49.3 million with earnings before interest, taxes and amortization of approximately $21.3 million.
Phase I of the Plant will initially produce only torrified biomass briquettes.