CM Biomass has approximately 770.000 MT installed wood pellet production capacity as of April 2022 with a plan of further increasing the production to approximately 1.100.000MT. From 2021 and throughout 2022 CM Biomass has been investing further into expanding production capability both in the US and into local production in Denmark.
The addition of more wood pellet factories was a timely addition to our production portfolio, especially considering the subsequent further increase in pressure on global wood pellet supply by the – at that time – unexpected sanctions against Russia and Belarus. In February 2022, we finalized the acquisition of three wood pellet plants Southeast US from Mohegan Renewable Energy, adding a new set of production facilities in Mississippi, Alabama, and Tennessee to our own production to accommodate the growing international demand.
Our North American production facilities are primarily supplied with the byproducts of the sawmilling industry, but we have also successfully developed a facility in Douglas, Georgia, that converts peanut hulls, an entirely sustainable raw material, into a competitive and valuable product. Our US production is situated at the following locations (with Joint Ventures in italic):
- Quitman, Mississippi
- Crossville, Alabama
- Jasper, Tennessee
- Huntsville, Texas
- Douglas, Georgia
- Ideal, Georgia
- Effingham, South Carolina
In early June 2022 we finalized our acquisition of Ekman & Co AB including the Vildbjerg factory near Herning in Denmark. It is among the first wood pellet factories in the world, and while their strong client portfolio and high-quality production make them financially stable, the added option of a local production cluster provides a measure of long-sought supply safety for our local long-term premium pellet clients. The acquisition of the Vildbjerg factory added 40.000 annual MT of local wood pellet production into the portfolio of CM Biomass.