Publication of Circular and Notice of General Meeting in relation to proposed acquisition of flexible, low-carbon and renewable UK power generation from Iberdrola
RNS Number : 3839D
Drax Group PLC
Following a court hearing to approve the result of an auction on 30 March 2017, Drax has now completed the acquisition of substantially all of the assets of Louisiana Pellets(1). The acquisition price was $35.4m.
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 plant is expected to return to service by early 2018 following incremental investment to upgrade and optimise the facility.
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.”
Drax Investor Relations:
+44 (0) 7730 763 949
Drax External Communications:
+44 (0) 1757 612026
+44 (0) 1757 612165
(1) Louisiana Pellets is the owner and developer of a wood biomass pellet manufacturing facility located in Urania, Louisiana.