Drax acquires Billington Bioenergy, enters domestic wood fuel heating market
Drax has acquired Billington Bioenergy (BBE), the UK's second largest wood pellet distributor. The move signals the power generator's intention to enter the country's growing biomass heat sector.
Drax is now the UK's largest renewable power generator by replacing much of its coal capacity with biomass, and is also a world leader in sourcing sustainable biomass through Drax Biomass and supplying renewable electricity to businesses through Haven Power.
The acquisition provides an opportunity to grow a significant market for wood pellets as a source of sustainable heat in the UK. This market is expected to grow from the current levels of around 200,000 tonnes per year in 2013 to more than 1 million tonnes per year by 2020.
Dorothy Thompson, Drax Group CEO, says: 'Biomass is a cost-effective, low carbon and dependable source of heat which homes and businesses can rely on. BBE is a great business; it shares our customer service ethos and unswerving commitment to sustainability so I am delighted to be working with them.'
BBE will be continuing to run from its Liverpool office, and all the team and existing arrangements will remain unchanged.