In a release Tuesday, the Selma and Dallas County Economic Development Authority announced what could be a significant new economic development project that will locate in Dallas County.

While economic development officials are not releasing all information about the project yet, the finer details of the project and its impact on the county will be announced soon.

“The Selma and Dallas County Economic Development Authority and Team Selma have worked with Zilkha Biomass Energy for two years to reopen an operation to produce pellets at the former Dixie Pellets site,” EDA executive director Wayne Vardaman said in the release. “On April 3, Zilkha CEO Jack Holmes informed me in a formal letter, that a long-term lease was signed with the Alabama State Port Authority on property formerly occupied by Dixie Pellets.”

Zilkha Biomass Energy purchased Dixie Pellets and the 25-acre site the plant formerly operated on out of bankruptcy in 2009 for $6.25 million.

Vardaman, in the release, said incentive and infrastructure agreements have not been finalized, but “expect an official announcement in the next two weeks.”

According to its website, Zilkha Renewable Energy, a biomass producer based in Houston, “makes power out of woody biomass. We produce baseload natural renewable fuel, providing good long-term jobs in the field and our plants.”

According to an article appearing in the Beaumont (Texas) Enterprise, Zilkha expects its first large-scale commercial plant, planned for Selma, to be operational in late 2013.

The article also said Zilkha plans to adapt the plant to produce 275,000 tons per year of “Zilkha Black” pellets.

“We have about a year’s worth of work once the off take agreement for the plant has been finalized,” Zilkha vice-president for business development Larry Weick said in the article. “So we are looking at a late-2013 start-up. The previous plant was not successful due to several factors, but Zilkha is confident that operating the plate at 275,000 tons per year, well below the original design capacity of 500,000 tons per year, will be economically viable.”

According to the website, the company is seeking to establish several plants, including “projects which would expand through Mobile, Alabama, and also projects in British Columbia, Canada.”

Further details and comments about the purchase and agreements were deferred until an official announcement is made in the coming weeks.