Groundbreaking: Indeck to seek local markets for wood products
By Ernest Herndon | Enterprise-Journal
Posted: Friday, November 21, 2008 11:34 AM CST
Pictured at Indeck Energy Services’ groundbreaking are, from left, plant manager Randal Myers, Homan Industries president Larry Homan, Indeck president Gerry DeNotto, Garrick Combs of the Mississippi Development Authority, Board of Supervisors president Tazwell Bowsky, Economic Development District executive director Britt Herrin and president James Wicker, and Magnolia Mayor Melvin Harris. (Aaron Rhoads | Enterprise-Journal)
A wood pellet mill that will locate in the Metro-Pike Industrial Park will sell its product locally for use in home heating and other purposes, a spokesman for Indeck Energy Services said.
Officials broke ground Thursday for the Indeck Magnolia Biofuel Center on Highway 51 North, Magnolia.
“It will be a small step on the path of energy independence when we get this plant going,” said company president Gerry DeNotto of Buffalo Grove, Ill.
The $11 million plant will employ at least 20 people and should be up and running by September 2009.
“It’s a great day for Pike County,” said board of supervisors president Tazwell Bowsky during the ceremony.
Plant manager Randal Myers said the company has shifted its focus exclusively to domestic markets. Initial plans called for 60 percent foreign markets and 40 percent domestic.
Officials broke ground Thursday for the Indeck Magnolia Biofuel Center on Highway 51 North, Magnolia.
“It will be a small step on the path of energy independence when we get this plant going,” said company president Gerry DeNotto of Buffalo Grove, Ill.
The $11 million plant will employ at least 20 people and should be up and running by September 2009.
“It’s a great day for Pike County,” said board of supervisors president Tazwell Bowsky during the ceremony.
Plant manager Randal Myers said the company has shifted its focus exclusively to domestic markets. Initial plans called for 60 percent foreign markets and 40 percent domestic.
When the plant goes online it will ship pellets by rail to the Northeast for use in home heating. But Myers said he expects plenty of local use for the compressed wood particles as well.
Pellets will be sold in bulk and in 40-50-pound bags for use in wood stoves. Myers said bags likely will retail in the $5 range.
He said wood pellet heat is cheaper than natural and LP gas, and estimated it would take 3 tons a year to heat an 1,800-square-foot house at a cost of around $500.
Pellets will be sold in bulk and in 40-50-pound bags for use in wood stoves. Myers said bags likely will retail in the $5 range.
He said wood pellet heat is cheaper than natural and LP gas, and estimated it would take 3 tons a year to heat an 1,800-square-foot house at a cost of around $500.
There also are plans under way to try to use pellets to run air-conditioning systems and heat chicken houses.
“We’re spending a lot of money to develop these local markets,” Myers said.
The mill should be a boon for local landowners and loggers as well.
“We’ll be buyers of sawdust, shavings, wood chips and round wood,” Myers said, adding that both pine and hardwood are acceptable.
Shavings are the first choice because they’re already dry. Indeck is working with Weyerhaeuser Corp. on a method to use treetops, which currently would cost more to gather than the mill could pay.
“We’ll be in the market for most of those pine trees coming off thinnings,” Myers said.
“We’re spending a lot of money to develop these local markets,” Myers said.
The mill should be a boon for local landowners and loggers as well.
“We’ll be buyers of sawdust, shavings, wood chips and round wood,” Myers said, adding that both pine and hardwood are acceptable.
Shavings are the first choice because they’re already dry. Indeck is working with Weyerhaeuser Corp. on a method to use treetops, which currently would cost more to gather than the mill could pay.
“We’ll be in the market for most of those pine trees coming off thinnings,” Myers said.
“We’re pretty sure we have enough timber within a 25-mile radius to keep us in operation 30 years.”
He estimated the mill will process 200,000 tons of raw wood a year, shipping out 90,000 tons of pellets and using 50,000 tons as fuel in the mill.
By providing a nearby outlet for local loggers, the mill will cut down on their fuel costs, he said.
He estimated the mill will process 200,000 tons of raw wood a year, shipping out 90,000 tons of pellets and using 50,000 tons as fuel in the mill.
By providing a nearby outlet for local loggers, the mill will cut down on their fuel costs, he said.