3rd Oct 2022 09:54
(Alliance News) - Drax Group PLC on Monday said it fully acquired Alabama Pellets LLC by buying the remaining 10% interest in the joint venture from Two Rivers Lumbers Co LLC.
The USD22 million acquisition is expected to complete this month, Drax added.
Yorkshire-based power generation firm Drax said Alabama Pellets has a nameplate production capacity of 300,000 tonnes per year.
Alabama Pellets 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 acquisition will provide Drax with net economic control over a further 66,000 tonnes of sustainable biomass production capacity per annum, rights over land associated with Demopolis and extend long-term fibre supply arrangements," Drax stated.
The Demopolis pellet plant commissioned in 2022 and has a nameplate production capacity of 360,000 tonnes per year, Drax explained.
Drax shares were 1.3% higher at 608.18 pence each in London on Monday morning.
By Tom Budszus; [email protected]
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