DRAX has completed the $35.4 million takeover of a US biomass pellet producer as part of plans to self supply its North Yorkshire power station.
A court hearing has approved Drax’s acquisition of Louisiana Pellets, which it bid for on March 30 at a bankruptcy auction.
Louisiana Pellets will provide around 450,000 tonnes a year, which the group says will play an important part in Drax’s strategy to build a flexible supply chain capable of self-supplying 30 per cent of its generation requirement at its power plant near Selby.
The Louisiana plant will be operational by early 2018 following investment to upgrade the facility.
Dorothy Thompson, chief executive of Drax Group, said: “Louisiana Pellets marks another positive step in delivering the group strategy.
“The deal forms part of our plan to significantly increase our capability to manufacture high quality compressed wood pellets and increase self-supply.”
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