1606 Corp Signs LOI for Potential Texas Power Plant and Data Center Project
News related to:1606 Corp · 2 min read
1606 Corp. has entered into a non-binding Letter of Intent (LOI) with Prime Tex Group, USA, to explore the potential acquisition or assignment of the company's contractual rights and interests in a biomass power and data center project located in Texas. The project spans approximately 132 acres and includes an existing biomass power generation facility.
According to 1606 Corp., the LOI represents an initial step in evaluating opportunities to create value from the project.
Prime Tex Group, a large-scale industrial group, has established operations in the United States through Prime Tex Lumber LLC, which has acquired an operating sawmill in Kountze, Hardin County, Texas. The sawmill produces Southern Yellow Pine lumber and industrial timber products, aligning with Prime Tex's broader strategy to expand its presence in U.S. timber and wood processing. The company is also setting up another modern saw mill at Kennard, Texas, under the name Prime Tex Inc., which is expected to go into production by the end of 2026.
Prime Tex's expansion plans include the acquisition of additional mills and forest resources, as well as the development and operation of biochar production and biomass pellet facilities. The company has expressed an interest in expanding into biomass power generation in the United States, complementing its existing timber, wood-processing, and renewable-energy activities.
The project, which includes an existing biomass power generation facility and related infrastructure, has been evaluated by 1606 Corp. for redevelopment in connection with data center and high-performance computing applications. The company's strategy focuses on the potential value created by combining existing power-generation infrastructure, available real estate, and the growing demand for powered sites capable of supporting data center and AI-related infrastructure.
1606 Corp. remains open to evaluating other strategic alternatives and discussing potential transactions involving the project or its Purchase and Sale Agreement (PSA) rights with additional parties. The LOI is non-exclusive and non-binding, and both parties may discontinue discussions at any time for any reason. The LOI is scheduled to expire on December 31, 2026, unless extended in writing by the parties.
The project's existing biomass infrastructure and surrounding East Texas timber market are seen as potential strategic alignments with Prime Tex's operations. However, the due diligence process and further negotiations are necessary before any definitive agreements can be reached. There is no assurance that a transaction with Prime Tex Group, USA will ultimately be completed.
1606 Corp. continues to explore multiple potential paths involving the project, including the acquisition and development of the Lufkin power generation facility, financing, strategic arrangements, potential end-user relationships, or a potential sale or assignment of its contractual interests under the PSA. No particular alternative has been selected at this time.