Drax has today announced it has completed the acquisition of Canadian biomass pellet producer Pinnacle Renewable Energy.
The acquisition is predicted to increase Drax’s annual operational capacity to 4.9 million tonnes of sustainable biomass pellets from the current 1.6 million tonnes.
The move is expected to help accelerate the firm’s plans to deliver bioenergy with carbon capture and storage (BECCS).
A recently published report estimated that achieving the net zero target without BECCS would cost the UK an additional £15 billion.
Will Gardiner, Chief Executive Officer of Drax, said: “This is an exciting and important acquisition which positions Drax as the world’s leading sustainable biomass generation and supply business.
“As well as making Drax an international supplier of sustainable biomass, this deal advances our strategy to increase self-supply, reduce our own biomass production cost and create a long-term future for sustainable bioenergy.”