Drax Group completes $35.4m acquisition of Louisiana Pellets

Drax Group, the North Yorkshire energy provider, has announced the completion of the acquisition of Louisiana Pellets.

Following a court hearing to approve the result of an auction on 30 March 2017, Drax has now purchased all of the assets of Louisiana Pellets in a $35.4m deal.

Louisiana Pellets will provide additional biomass pellet capacity in the region of 450k tonnes pa, playing an important part in Drax’s strategy to build a flexible supply chain capable of self-supplying 30% of its generation requirement.

The pellet plant is expected to return to service by early 2018 following investment to upgrade and optimise the facility.

Drax Power Station is now a predominantly renewable power generator, having converted three of its generating units to only use sustainable biomass, which has resulted in carbon savings of more than 80% compared to coal and the creation of a completely new supply industry.

Dorothy Thompson, Chief Executive Officer of Drax Group, said: “Louisiana Pellets marks another positive step in delivering the Drax Group strategy.

“The deal forms part of our plan to significantly increase our capability to manufacture high quality compressed wood pellets and increase self-supply to Drax Power Station.

“Upgrading half the Power Station to use sustainable wood pellets has resulted in Drax producing 16% of the UK’s renewable electricity and with the right conditions we aim to do more.”

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