House measure directs state agency to prioritize recruitment, retention and expansion of facilities that generate hundreds of millions in annual exports

BATON ROUGE — A bill moving through the Louisiana Legislature would formally direct the state’s primary economic development agency to prioritize the wood pellet manufacturing industry — a sector that has grown from near obscurity into one of the state’s most significant rural export industries in less than a decade.

House Bill 670, authored by state Rep. Charles Owen, R-Rosepine, passed the House Commerce Committee 13-0 on March 17 and was recommitted to the House Appropriations Committee on March 18 after being amended and ordered engrossed. The legislation would add two new sections to Louisiana Revised Statutes Title 51, directing Louisiana Economic Development to support the recruitment, retention and expansion of wood pellet manufacturing facilities across the state.

What the Bill Does

The measure instructs Louisiana Economic Development — the cabinet-level agency responsible for attracting and retaining businesses in the state — to treat wood pellet manufacturing as a priority sector within its existing statutory authority and subject to available funding.

Under the bill, LED would be directed to prioritize and enhance job creation incentives for wood pellet facilities, establish workforce development and training initiatives, coordinate with Louisiana ports regarding infrastructure needs tied to wood pellet cargo, develop site readiness criteria for new facilities, and provide clear regulatory pathways for facility development statewide.¹

The legislation defines “wood pellet manufacturing” within state law and establishes findings and legislative intent, giving the industry a formal policy footing it previously lacked. Importantly, the bill does not create new spending programs or mandate rulemaking. Committee amendments adopted in Commerce softened the original language, changing directives from mandates to permissions and replacing requirements to promulgate rules with authority to develop policies, guidance or program criteria consistent with existing economic development programs.

Why Wood Pellets Matter to Louisiana

Wood pellets are compressed cylinders of dried wood fiber — manufactured from sawmill residues, logging byproducts, wood chips and low-grade roundwood — that are used as fuel in industrial power plants as a substitute for coal. The value of Louisiana’s wood pellet exports grew from nearly nothing in 2018 to over $800 million in 2023, according to data from the LSU Agricultural Center, driven by European Union mandates requiring member nations to reduce greenhouse gas emissions.

Louisiana’s wood biomass facilities are capable of producing 1.26 million tons of biomass wood pellets per year, representing approximately 9.4% of total U.S. pellet production.² The state’s multiple deepwater ports serve as gateways for those exports, with the Port of Greater Baton Rouge functioning as the primary shipping hub, where Drax Biomass operates a dedicated storage and loading facility.

The industry is deeply rooted in rural North and Central Louisiana. Drax Biomass, headquartered in Monroe, operates three compressed wood pellet plants — including Morehouse Bioenergy in Bastrop and LaSalle Bioenergy in Urania — and employs more than 125 workers in Northeast Louisiana and approximately 190 statewide.³

The economic ripple effect extends well beyond plant employment. In LaSalle Parish alone, Drax’s total annual economic impact — direct, indirect and induced — was estimated at $197.4 million in 2023, contributing $69.4 million to parish GDP and generating $5.6 million in state and local tax revenue per year.⁴

The industry also provides a vital market for Louisiana’s timber landowners. The state’s timber industry provides a reliable supply of wood feedstocks such as logging residues, sawdust and wood chips, and the biomass sector provides a market incentive to clear brush and dead trees that otherwise have little or no value.²

Statewide Significance

Biomass wood pellets sourced from Louisiana forests are creating economic opportunities in rural communities and investment opportunities for energy innovation, with the state’s multiple ports offering a gateway to international commerce hubs.² “Forestry is the historic cornerstone for Central Louisiana’s economy,” said Jim Clinton, president and CEO of the Central Louisiana Economic Development Alliance. “During the past few years, we have experienced significant growth in wood-based manufacturing.”⁵

Louisiana’s broader forestry sector carries considerable weight. LED Secretary Don Pierson has noted the sector’s $12 billion annual impact in Louisiana, with economic development efforts touching everything from paper, pulp and sawmills to port, rail and road infrastructure, as well as international commerce.⁵

Global demand for wood pellets continues to grow. Since 2012, U.S. wood pellet exports have grown from $258 million to $1.5 billion — an increase of nearly 500% — with Louisiana, Georgia, North Carolina, Virginia and Florida among the leading producing states, according to USDA data.⁶ Total U.S. exports reached a record 10 million metric tons in 2024, according to the USDA Foreign Agricultural Service.⁷

The availability of wood fibers, along with proximity to ports that facilitate access to European markets, have been major factors in the concentration of industrial wood pellet manufacturing along the southeastern U.S. coast.⁸ Louisiana sits at the heart of that competitive advantage.

Industry Footprint and Momentum

Beyond Drax, other energy companies are moving into Louisiana’s wood-based fuel sector. Louisiana Green Fuels has announced plans to open a refinery in Caldwell Parish producing up to 32 million gallons of diesel and naphtha annually from forestry byproducts, while Beaver Lake Renewables is set to convert a former International Paper mill in Rapides Parish into a green methanol plant using wood waste as feedstock.²

Wood pellet producers have been offered incentives under the state’s Industrial Tax Exemption and Quality Jobs programs, with LED working to attract prospects who value Louisiana’s wood basket for international commerce.⁹ After initially targeting 47 jobs in Morehouse Parish, Drax exceeded state employment goals and grew to 159 workers across Morehouse and LaSalle parishes, while also relocating its corporate headquarters from Atlanta to Monroe, adding 59 additional positions.⁵

Status

HB 670 remains pending before the House Appropriations Committee as of March 20, 2026. The bill carries a fiscal note indicating a potential general fund expenditure, which prompted the referral to Appropriations following its unanimous Commerce Committee approval. No companion Senate legislation has been introduced.

SOURCES

¹ Louisiana Legislature, HB 670 Engrossed Digest, 2026 Regular Session. legis.la.gov/legis/BillInfo.aspx?i=250532
² Louisiana Economic Development, Bio Energy — Energy Diversity. opportunitylouisiana.gov/key-industry/energy/energy-diversity/bio-energy
³ Grow NELA, Our Economy. grownela.com/economy/
⁴ Drax US, LaSalle — Louisiana. drax.com/us/about-us/lasalle-louisiana/
⁵ Louisiana Forestry Association, “Economic Developers Undergird Top Crop,” Dec. 18, 2020. laforestry.com/single-post/economic-developers-undergird-top-crop
⁶ Andrew Muhammad, “U.S. Wood Pellet Exports Continue to Reach Record Levels,” Southern Ag Today, March 9, 2023. southernagtoday.org/2023/03/09/u-s-wood-pellets-exports-continue-to-reach-record-levels/
⁷ Biomass Magazine, “USDA: US Wood Pellet Exports Top 10 Million Metric Tons in 2024.” biomassmagazine.com
⁸ Dwivedi et al., “Ecological and Economic Implications of the US Wood Pellet Industry,” Resources for the Future. resources.org/common-resources/ecological-and-economic-implications-us-wood-pellet-industry/
⁹ HuffPost / Louisiana Economic Development, “Louisiana Wood Pellet Plants Will Cater to Europe’s Energy Needs.” huffpost.com/entry/louisiana-wood-pellet-pla_b_6245666