Drax Group has agreed a deal to buy a Canadian pellet plant.
The Princeton Standard Pellet Corporation’s operations in British Columbia will add a further 90,000 tonnes capacity for the power giant.
Having completed a huge transformation from coal to biomass-fired generation, the company has been ramping up its supply chain, to feed the huge power station in North Yorkshire, as well as third party operations. It is part of a strategy to hit eight million tonnes a year by 2030.
Read more: Drax sees earnings rise ahead of major investments in first half of 2022
The plant, which has been operating since 1995, produces primarily from sawmill residues. Around half of the output is already contracted to Drax.
It is located close to Drax’s Armstrong and Lavington plants and the port of Vancouver, and has 32 employees, who are expected to join the company. The acquisition is expected to complete in the autumn.
Will Gardiner, Drax Group chief executive, 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.”
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