Last checked at 3 Aug 2022 16:00
3 August 2022
Drax Group plc
("Drax", "the Group", "Drax Group", "the Company"; Symbol: DRX)
Acquisition of 90,000 tonnes Canadian pellet plant
Drax Group has signed an agreement with Princeton Standard Pellet Corporation (PSPC) to acquire its pellet plant in Princeton, British Columbia, Canada.
The plant, which has been operating since 1995, has the capacity to produce 90,000 tonnes of wood pellets a year, primarily from sawmill residues. Around half of the output from the plant is currently contracted to Drax.
The plant is located close to the Group's Armstrong and Lavington plants and the port of Vancouver, and has 32 employees, who are expected to join Drax.
Following completion of the acquisition the plant is expected to contribute to the Group's strategy to increase pellet production to 8 million tonnes a year by 2030.
The acquisition is expected to complete in Q3 2022.
Will Gardiner, Drax Group CEO said: "We look forward to welcoming the Princeton pellet plant team to Drax Group as we continue to build our global pellet production and sales business, supporting UK security of supply and increasing pellet sales to third parties in Asia and Europe as they displace fossil fuels from energy systems. Drax's strategy to become a world leader in sustainable biomass, supports international decarbonisation goals and puts Drax at the heart of the global, green energy transition."
Enquiries:
Drax Investor Relations: Mark Strafford
+44 (0) 7730 763 949
Media:
Drax External Communications: Ali Lewis
+44 (0) 7712 670 888
Website: www.Drax.com
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