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Wood Pellet Plant Under New Management

Zilkha Biomass Energy has announced plans for a plant to make its proprietary Black Pellets — an alternative to coal — in a Selma plant once home to Dixie Pellets.

Texas-based Zilkha uses wood products and wood waste to create pellets that are usable in coal-fired generating plants, cutting emissions. The company describes its pellets as “carbon neutral” and generating “no increased greenhouse gas emissions” if the pellets are produced from sustainable forests.

Zilkha bought a practically new pellet plant in Selma in 2010, with plans to have it up and running as its first commercial plant by 2013.

In early August, U.S. Bank, Stonehenge Capital Co. and AMCREF Community Capital announced that they were teaming to provide more than $5 million in state and federal New Markets Tax Equity funding for the plant.

A press release from the funding partners states the plant will create 55 jobs in a county with the state’s third highest unemployment rate.

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