1st Jul 2021 11:18
(Alliance News) - Drax Group PLC has agreed to buy a further 20% stake in Alabama Pellets for USD29.7 million from The Westervelt Co, it announced on Thursday.
Alabama Pellets is a joint venture which owns the Demopolis and Aliceville pellet plants in the US state of Alabama. The biomass pellets are burned by electricity generators like Drax as a more environmentally friendly alternative to coal and natural gas.
The cash purchase will see Drax increase its interest in Alabama Pellets to 90%, and provide it with control of a further 130,000 tonnes of annual biomass production.
Completion of the deal is expected to take place in July.
Drax's acquisition of Pinnacle Renewable Energy in April included a change of control provision over Alabama Pellets.
The remaining joint venture partner, Two Rivers Lumber, holds a 10% interest in Alabama Pellets.
Yorkshire-based Drax has 13 operational pellet plants with total nameplate production capacity of 4.9 million tonnes a year once commissioned.
Shares were up 0.5% at 426.00 pence in London on Thursday morning.
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Drax