Drax announces new biomass acquisition

The company aims to double its sales of biomass by 2030

Big Zero Report 2022

Drax Group has announced the acquisition of the pellet sales contract book of Pacific BioEnergy, a Canadian wood pellet fuel supplier.

The deal is estimated to add 2.8 million tonnes of orders for sustainable biomass supply to counterparties in Japan and Europe.

The agreement is forecast to increase the group’s long-term third-party sales book by 15%, to around 23 million tonnes with total revenues of more than $4.5 billion (£3.4bn).

Will Gardiner, Drax Group Chief Executive Officer, said: “This deal supports Drax’s ambition to double our sales of sustainable biomass by 2030 to markets in Asia and Europe where demand for biomass is increasing as countries transition away from coal.

“It also demonstrates Drax’s commitment to the growth of sustainable biomass in Japan specifically, where we expect to establish a new office in 2022.

“We look forward to working with our partners in Japan and other markets across Asia and Europe as part of our aim to be a global leader in sustainable biomass, making an even greater contribution to the world’s efforts to reach net zero.

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