Drax Group has completed the sale of Drax Generation Enterprise Limited, which holds four combined cycle gas turbine (CCGT) power stations, to VPI Generation Limited.
Following the sale, Drax no longer operates any CCGTs and on 31 March will end commercial coal generation, with formal closure of its remaining coal assets in September 2022.
The £193.3 million (€214 million) sale included four stations: Damhead Creek 812 MW, Rye House 715 MW, Shoreham 420 MW, and Blackburn Mill 60 MW.
In a statement made in December, Drax said the CCGTs have performed well since the company acquired them in December 2018, but did not form part of the company’s core flexible and renewable generation strategy.
Drax will use the proceeds to develop its biomass supply chain and accelerate its ambition to become a carbon-negative business by 2030.
At the time of the initial announcement, Drax CEO Will Gardiner said: “We greatly value the contribution that our colleagues in gas generation have made to the group over the last two years. As we focus on a renewable and flexible portfolio, it is right that we divest these gas generation assets and in doing so, create value for our shareholders.”