Drax Group PLC Completion of Acquisition of Louisiana Pellets (3839D)
26 April 2017 - 6:01PM
UK Regulatory
TIDMDRX
RNS Number : 3839D
Drax Group PLC
26 April 2017
26 April 2017
DRAX GROUP PLC
(Symbol: DRX)
Completion of Acquisition of Louisiana Pellets
Following a court hearing to approve the result of an auction on
30 March 2017, Drax has now completed the acquisition of
substantially all of the assets of Louisiana Pellets(1) . The
acquisition price was $35.4m.
Louisiana Pellets will provide additional biomass pellet
capacity in the region of 450k tonnes pa, playing an important part
in Drax's strategy to build a flexible supply chain capable of
self-supplying 30% of its generation requirement.
The plant is expected to return to service by early 2018
following incremental investment to upgrade and optimise the
facility.
Dorothy Thompson, Chief Executive Officer of Drax Group,
said:
"Louisiana Pellets marks another positive step in delivering the
Drax 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 to Drax Power Station.
"Upgrading half the Power Station to use sustainable wood
pellets has resulted in Drax producing 16% of the UK's renewable
electricity and with the right conditions we aim to do more."
Enquiries:
Drax Investor Relations:
Mark Strafford
+44 (0) 7730 763 949
Media:
Drax External Communications:
Paul Hodgson
+44 (0) 1757 612026
Ali Lewis
+44 (0) 1757 612165
Website: www.drax.com
Notes:
(1) Louisiana Pellets is the owner and developer of a wood
biomass pellet manufacturing facility located in Urania,
Louisiana.
END
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