A $100 million plant that will transform sugarcane waste in Louisiana into biofuel pellets will help eliminate disputes over the piles of such waste accumulating in the southern region of the state, according to those involved in the project.
Delta Biofuel announced the finalization of investments to construct the plant last month. Planned for a 16-acre site in Iberia Parish, the facility will convert what’s called bagasse – the fibrous substance left over after juice is captured from milled sugarcane – into a source of low-emission energy, according to the Governor’s Office.
“Delta aims to utilize all residual fiber from each cane crop,” Phil Keating, Delta Biofuel’s CEO, said in a statement emailed to the Louisiana Record. “In addition, we can use stored bagasse from prior seasons. Therefore, we plan to eliminate the large storage piles visible around the state.”
Conflicts that have resulted over this agricultural waste accumulation in Louisiana should be reduced when the plant comes online, according to Keating.
“We would expect once we are up and running that disputes regarding storage and/or disposal of residue would naturally decline and ultimately go away – at least regarding the sugar mills we are working with,” he said.
Currently, Delta Biofuel has contracts with five sugar mills in surrounding parishes, as well as long-term contracts to supply utility firms in Europe with 1.8 million tons of biofuel pellets, according to Gov. John Bel Edwards’ Office. Eventually, the plant will produce 340,000 metric tons of the pellets per year, the company reported.
The plant is expected to create 126 direct jobs and 149 indirect jobs in the Acadiana region. Delta Biofuel agreed to move forward with the project after Louisiana Economic Development (LED) offered an incentive package that included a $1 million grant for infrastructure improvements.
“We look forward to putting waste bagasse to good use, solving a serious problem for the sugar industry and reducing (greenhouse gas) emissions,” Keating said.
Louisiana produced more than 2 million tons of raw sugar last year from its sugarcane crop.