US/Canada/UK – Drax Group announced plans to acquire a 20 percent minority passion in Alabama Pellets LLC for $29.7 million cash factor to consider in an offer with The Westervelt Co. The offer is anticipated to be settled by the end of July and also will certainly enhance Drax’s rate of interest in Alabama Pellets to 90 percent.
Drax’s acquisition earlier this year of Canadian-based Pinnacle Renewable resource Inc. included an adjustment of control arrangement over Alabama Pellets. The continuing to be joint venture companion, 2 Rivers Lumber Co. LLC, holds a 10% financial rate of interest.
Alabama Pellets has plants in Demopolis and also Aliceville. Drax said the boosted stake in the company will supply it with economic control over an additional c. 130,000 tonnes of biomass production ability per annum; the Demopolis as well as Aliceville, Alabama, procedures have a mixed nameplate production capability of 660,000 tonnes per year. Aliceville was commissioned in 2018 as well as Demopolis is expected to be appointed in 2021.
Drax Group has 13 functional pellet plants, consisting of Aliceville, plus satellite plant growths and also Demopolis, with a complete nameplate production ability of 4.9 million tonnes per annum once commissioned. The facilities are located in British Columbia, Alberta and also the Southeast USA.
In May, Drax also announced strategies to invest $40 million construct a triad of “satellite” timber pellet plants that will create 30 work in rural Arkansas.
Headquartered in the United Kingdom, Drax runs a portfolio of sustainable biomass, hydroelectric and pumped hydro storage assets throughout four sites in England as well as Scotland. The North American pellet plants additionally provide Drax customers in Europe as well as Asia. The Drax Group uses 3,400 people in the UK and also North America.