(Alliance News) - Drax Group PLC on Wednesday announced an agreement with Princeton Standard Pellet Corp to acquire its pellet plant in British Columbia, Canada for an undisclosed sum.
The plant has the capacity to produce 90,000 tonnes of wood pellets a year, with half the output currently contracted to the FTSE 250 power generation firm.
The acquisition is expected to be completed in the third quarter of 2022, and it is set to contribute to Drax's strategy to increase its pellet production to 8 million tonnes a year by 2030.
"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," said Chief Executive Officer Will Gardiner.
Shares in Drax closed 0.3% lower at 781.00 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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