Drax has entered the domestic wood fuel heating market with the purchase of the UK’s second largest wood pellet distributor.
The move will see Drax supply wood pellets through Billington Bioenergy (BBE) to domestic and commercial customers.
They are a sustainable form of renewable heating, offering an alternative to fossil fuels such as heating oil and solid fuels.
It is supported by the government’s Renewable Heat Incentive (RHI) scheme, which offers payments to property owners who install green heating technologies.
Drax expects the UK wood pellets market to grow from around 200,000 tonnes in 2013 to more than a million tonnes by the end of the decade.
Dorothy Thompson, Chief Executive of Drax Group said: “This is an exciting opportunity to help transform the UK heat market in the same way we have made the UK power market so much less dependent on high carbon fossil fuels.
“Biomass is a cost-effective, low carbon and dependable source of heat which homes and businesses can rely on.”