Drax reaches agreement to sell gas assets for £193m

The British power producer plans to use the proceeds from the sale to develop its biomass business

Drax has agreed to sell four combined cycle gas turbine (CCGTs) power stations to VPI Holding for £193.3 million.

The gas assets are located in the South East of England and in Lancashire.

Drax acquired the CCGTs from Iberdrola in December 2018 as part of a portfolio of pumped storage, hydro and gas generation.

The company said it will use the proceeds from the sale to develop its biomass supply chain and accelerate its ambition to become a ‘carbon-negative’ business by 2030.

Will Gardiner, Drax Group Chief Executive Officer, said: “By focusing on our flexible and renewable generation activities in the UK we expect to deliver a further reduction in the Group’s carbon dioxide emissions.

“By using carbon capture and storage with biomass (BECCS) at the power station in North Yorkshire to underpin the decarbonisation of the wider Humber region, we believe we would be creating and supporting around 50,000 new jobs and delivering a green economic recovery in the North.”

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