Drax Group expects to finish its purchase of a Canadian wood pellet plant in the third quarter of this year.
Drax is working with the Princeton Standard Pellet Corporation to acquire its 90,000 tonne pa pellet plant in Princeton Canada.
The plant, which has been operating since 1995, can produce 90,000 tonnes of wood pellets a year, primarily from sawmill residues. Around half of the output from the plant is currently contracted to Drax.
The plant is close to the Group’s Armstrong and Lavington plants and the port of Vancouver, and employs 32, who are expected to join Drax.
Following completion of the acquisition the plant is expected to contribute to the Group’s strategy to increase pellet production to 8m tonnes pa by 2030.
Will Gardiner, Drax Group CEO, said: “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. Drax’s strategy to become a world leader in sustainable biomass, supports international decarbonisation goals and puts Drax at the heart of the global, green energy transition.”
