URANIA, LA - German Pellets says it will begin construction on a new pellet production facility. The output of 1 million tons of wood pellets per year is double that of German Pellet's just completed Woodville, TX plant, it's.

Historically, Urania was an important location for the wood panel industry, home to a Georgia Pacific  particleboard plant. That made the location appealing, says Peter Leibold, manager of the German Pellets Group, since supply infrastructure, railway sidings, etc. are already in place. The new plant will employ 500.

“We have chosen a site with well-established wood supplies and logistics,” Leibold said. Another key factor for the choice was the availability of raw materials, with fast growing trees in the densely forested subtropical area.

Vecoplan won a €20 million contract - about $25.7 million - it's largest ever, for components of the project including wet milling, the dryer loading and disposal, dry milling, boiler feeders and the complete handling system plan for the pellet plant. Vecoplan also outfitted the Woodville, TX plant.

Germany has a huge appetite for wood pellets, as it moves to decommission its nuclear power plants, and convert power generation capacity to biofuel and out renewable sources.

The forestry industry is the second largest employer in the well-wooded state of Louisiana. The forests are managed sustainably. The new German Pellets production facility in Urania will create some 500 jobs in the region, both directly and indirectly.

 “Pellet consumption worldwide is on the rise, especially in Europe. This means that the construction of large production capacities is necessary,” said German Pellets CEO Peter Leibold. The demand from the European power plant market for the production of heat and electricity from wood pellets has risen sharply as Germany moves to decommission nuclear power plants and convert to biofuel.