In the US, wood pellet manufacturer Fram Renewable Fuels is to partner with a producer of pine shavings, Telfair Forest Products (TFP), to build a wood pellet production plant in Lumber City, Georgia.
The companies are scheduled to break ground on the facility this month before it becomes operational in January 2012.
Upon completion, the plant will convert around 350,000 tonnes a year of shavings into 125,000 tonnes of wood pellets.
The majority of the wood pellets produced at the Lumber City site will be exported to the European market to help meet the growing demand there. Fram has said that it will continue to expand its operations to keep up with the EU's demand, which is expected to continue to grow over the next decade.
In addition to this project, Fram is planning to build additional pellet production plants around central Georgia.
The new facility will create jobs for up to 25 people.