White Wood and Torrefied Pellet Mill

Mid South

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Established: 2009

White Wood and Torrefied Pellet Mill

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Asset Sale Description

Equity Partners HG has been retained to find a buyer for this 125K to 175K ton/year white wood pellet mill, including the 23 acres it sits on, in the southeastern U.S. (“the Plant”). A long term off take agreement could be available for qualified buyer. Equipment is also in place to produce about 30K tons/year of torrefied pellets. Since coming online in 2009, the Plant has produced over 75,000 tons of torrefied material and is the first commercial scale torrefaction facility located in the US. While torrefied wood pellets are an immediate and practical replacement for coal, able to integrate easily into existing coal power plants without lengthy or expensive conversions, white wood pellets are a more common replacement in coal fired operations. Because of this, in 2014, management decided to focus on producing white wood pellets and to sell into that market while continuing to develop the torrefied product and market. White wood pellets were initially selling for $150/ton but, due to oversupply, pricing declined to $110/ton, forcing the operation to close down in March of 2016 (torrefaction production ceased in December of 2016). While in operation, production of white wood pellets was ramped up to over 10,000 tons/month. The Plant owners filed for Chapter 11 Bankruptcy protection in December of 2017.
Currently, demand for white wood pellets is improving with the increase of biomass fired plants being built in the US, Japan and Europe.
This is an excellent opportunity for an existing white pellet manufacturer to expand capacity and at the same time gain the ability to produce torrefied pellets if that is of interest. It is also an ideal opportunity to purchase a commercial scale torrefaction facility with infrastructure in place to expand as needed.
Seeking court approval for entirety auction on or about October 10, 2018 for substantially all the Plant assets.

Detailed Information

Facilities:
Plant Highlights • • • - 10,000 ton wood receiving yard including a Bruks truck dump and telestacker - Wood sizing building including screeners and hammer hogs - Complete 170K ton per year dryer island with TSI Drum Dryer - Dry sizing and mixing building including hammermills and pre-pelleting mixing and conditioning - Pelletmill building including one 20 ton per hour line of 4 CPM pelletmills and one 20 ton per hour line of 3 Kahl pelletmills - Storage and loadout systems - 4 ton per hour world class torrefaction building - $18/ton truck cost to nearest port
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Ken Mann

Asset Sale Listed By:
Debbie Beall

Equity Partners, Inc.

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