Developers are hoping for a December groundbreaking for a new wood pellet mill in Pike County.

Indeck Energy Services of Buffalo Grove, Ill., has bought 16 acres on U.S. Highway 51 on the southwest side of the railroad track between Magnolia and Fernwood.

Officials say construction is expected to take eight months.

The $11 million mill will convert logs, chips and tops into dense pellets, which are used primarily as industrial fuel. It should employ at least 20 people.

The Southwest Mississippi Planning and Development District has applied for a $522,000 Community Development Block Grant to build a rail spur to the plant site.