Delta Biofuels Inc. expects to begin groundwork later this year on a $70 million renewable fuel plant that would utilize excess sugarcane pulp, or bagasse, as feedstock.

In December, the subsidiary of Tasso Renewable Energy began working with the Louisiana Economic Development (LED) to acquire a pellet plant in Jeanerette, aka Sugar City. According to the LED, Delta has agreements with four sugar mills in Iberia, St. Mary and St. Martin parishes to purchase feedstock bagasse. 

The biomass pellet manufacturing plant will use “all excess bagasse produced each harvest,” avoiding methane emissions that would typically be released by sugarcane waste, said CEO Philip Keating. 

Delta is looking to erect the plant on 16 acres near Enterprise Sugar Mill, one of its suppliers. The...