By Chris Hanson | March 07, 2013

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As of March 1, Biomass Power Louisiana, a subsidiary of Biomass Secure Power Inc., secured a six-month option to lease a site where it is proposing to build a new pellet plant.

The plant is a four-phase project set to be completed over several years. Phase one consists of three production lines capable of producing 340,000 tons of white wood pellets a year from whole trees and chipped fiber. Upon completion, the first phase will have the capacity to produce 1 million tons annually. The scope for the first phase will be released April 2013, with construction beginning summer 2013.

Torrefied pellets will be incorporated into the first production line in the second phase. Upon securing a buyer for the torrefied pellets, all lines developed during phase one will be modified to produce either standard grade or torrefied pellets, depending on the request.

In addition to the Baton Rouge Plant, Biomass Secure Power is proposing to develop storage and chipping facilities at the Port of Natchitoches on the Red River. From there, they would store and process logs before shipping to the main plant in Baton Rouge.

The wood pellets are destined for Europe, and the company is currently in talks with Asian and European power plants for long term off-take agreements.

The plant is partially funded by the Port of Baton Rouge by using municipal bonds sponsored by the port authority.