14th Dec 2021 11:22
(Alliance News) - Drax Group PLC announced on Tuesday that its subsidiary Pinnacle Renewable Energy Inc has acquired the pellet sales contract book of Pacific BioEnergy Corp.
The Yorkshire-based power generation business said that the deal will add 2.8 million tonnes of orders for biomass supply to counterparties in Japan and Europe.
The contracts, for delivery between 2022 and the mid-2030s, are expected to generate revenue of around CAD675 million, about GBP400 million, over the period.
Drax said the deal complements its existing supply contracts and has increased its long-term third-party sales by 15% to around 23 million tonnes with total revenue of over USD4.5 billion.
Drax iuses biomass in its own furnaces and also sells it to third-parties.
Chief Executive Will Gardiner added that the deal will also support Drax's ambition to double its sales of sustainable biomass by 2030 to markets in Asia and Europe where demand for biomass is increasing as countries transition away from coal.
Shares in Drax were up 2.2% at 587.00 pence on Tuesday in London.
By Heather Rydings; [email protected]
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