REG - Drax Group Plc - Acquisition of 90,000 tonnes Canadian pellet plant

DraxAnnouncement

03/08/2022 16:00

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RNS Number : 8081U  Drax Group PLC  03 August 2022

3 August 2022

 

Drax Group plc

("Drax", "the Group", "Drax Group", "the Company"; Symbol: DRX)

 

Acquisition of 90,000 tonnes Canadian pellet plant

 

Drax Group has signed an agreement with Princeton Standard Pellet Corporation
(PSPC) to acquire its pellet plant in Princeton, British Columbia, Canada.

 

The plant, which has been operating since 1995, has the capacity to 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 located close to the Group's Armstrong and Lavington plants and
the port of Vancouver, and has 32 employees, 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 8 million tonnes a year
by 2030.

 

The acquisition is expected to complete in Q3 2022.

 

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."

 

 

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 7730 763 949

 

Media:

Drax External Communications: Ali Lewis

+44 (0) 7712 670 888

 

Website: www.Drax.com (http://www.drax.com/)

 

 

END

 

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