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Drax Group of Selby, United Kingdom, a sustainable biomass production and supply company, announced Thursday that it will begin building the first of three new satellite pellet plants in Arkansas later this month.
In total, the company said it will invest $40 million and create about 30 new direct jobs in Arkansas.
The three plants will be located at sawmills and are expected to produce about 120,000 metric tons of sustainable biomass pellets a year from sawmill residue.
The company aims to increase supplies to its power station in the U.K., which has become the largest decarbonization project in Europe after being converted to use sustainable biomass instead of coal. Drax s strategy is to increase self-supply to 5 million tons by 2027; it is also working toward being carbon negative by 2030.