SEATTLE (Scrap Monster): Leading renewable energy company Drax Group announced that it has signed an agreement with Princeton Standard Pellet Corporation to acquire its pellet plant located in Princeton, B.C., Canada for an undisclosed amount. The acquisition is expected to be completed by third quarter this year.
The acquired pellet plant has the capacity to produce approximately 90,000 tonnes of wood pellets per year, mainly from sawmill residues. It is located in close proximity to Drax Group’s Armstrong and Lavington plants and the port of Vancouver. All the 32 employees of the plant will become part of Drax Group. It must be noted that Drax already consumes around half of the pellet production from the plant.
The acquisition will contribute to Drax Group’s earlier announced strategy to boost its pellet production to 8 million tonnes per year by 2030.
Commenting on the agreement, Will Gardiner, CEO, Drax Group said that the company looks forward to welcome the Princeton pellet plant team to the company, as it continues to build its global billet production and sales business. The company aims to become a world leader in sustainable biomass, by supporting international decarbonisation goals, which in turn will put the company at the heart of the global, green energy transition.