Drax Announces $50 Million Expansion to Aliceville Facility, Increases Investment in Alabama

As global demand for biomass continues to surge, Drax has announced a $50 million expansion at its Aliceville, Alabama wood pellet plant.

  • Expansion expected to result in a nearly 50% boost in wood pellet production capacity.
  • Announcement comes on the heels of recent study that shows Drax could contribute more than a quarter billion dollars to Alabama’s economy in 2023.
  • Alabama job seekers encouraged to apply for openings and career opportunities now available at the Aliceville plant.

Situated within an attractive supply of wood and timber, Aliceville is well-positioned as a growing hub for sustainable forestry and the biomass industry. The region boasts of a high concentration of existing sawmills that produce the residuals necessary to support sustainable wood pellet production.

“We are greatly appreciative for the continued investment Drax has placed in Aliceville, which is a tremendous blessing for the economy of our community, the local citizens who will be employed at Drax, as well as our supporting area businesses,” said Aliceville Mayor Terrence Windham. “Although our community is rural, I am pleased how we are utilizing our unique natural resources to help move our community forward in a dramatic way.”

The $50 million dollar investment at Drax’s Aliceville pellet facility will increase production capacity by nearly 50%, from 250,000 tons to 380,000 tons.

“The expansion at the Aliceville plant allows Drax to increase production capacity in the state while further investing in the local community and creating more job opportunities for Alabama residents,” said Matt White, Executive Vice President of North America Operations for Drax.

The expansion includes upgrades to existing systems as well as new truck dumps and pelletizer units, which will allow for an increase in the amount of sawmill residuals processed. The additional capacity is expected to begin commissioning in 2024.

“Together with our Demopolis plant, Aliceville plays a critical role in our ability to meet the growing global demand for wood pellets because it provides Europe and Asia with reliable, renewable electricity to help displace coal from their energy systems,” said White.

Drax’s goal is to increase its global pellet production capacity from around 5 million tons to 8 million tons by 2030.

An economic impact report released last week showed that Drax could contribute more than $260 million to Alabama’s economy in 2023, adding more than $100 million to the state’s GDP.

Alabama residents interested in learning more and applying for a career at Drax can visit drax.com/us/careers for a complete list of available openings.

Media contact

Alex Schott
VP, North America Communications
E: [email protected]
T: 318-372-4091

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonization project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilization and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tons of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 19 operational pellet plants and developments with nameplate production capacity of around 5 million tons a year.

Drax is targeting 8 million tons of production capacity by 2030, which will require the development of over 3 million tons of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.


Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimization, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com