Drax agrees acquisition of 90,000 tonnes Canadian pellet plant
Drax has signed an agreement with Princeton Standard Pellet Corporation (PSPC) to acquire its pellet plant in Princeton, British Columbia, Canada.
The plant 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 - which has been operating since 1995 - is currently contracted to Drax.
The acquisition is expected to complete in Q3 2022.
The plant is located close to Drax's Armstrong and Lavington plants, and the port of Vancouver.
It has 32 employees, who are expected to join Drax.
Following completion of the acquisition the plant is to contribute to Drax's strategy to increase pellet production to eight million tonnes a year by 2030.
Will Gardiner, CEO of Drax, 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.”
The plant 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 - which has been operating since 1995 - is currently contracted to Drax.
The acquisition is expected to complete in Q3 2022.
The plant is located close to Drax's Armstrong and Lavington plants, and the port of Vancouver.
It has 32 employees, who are expected to join Drax.
Following completion of the acquisition the plant is to contribute to Drax's strategy to increase pellet production to eight million tonnes a year by 2030.
Will Gardiner, CEO of Drax, 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.”
