Drax closes Louisiana Pellets acquisition

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UK's biggest electrical generation company Drax Group has recently completed the acquisition of Louisiana Pellets. The price for the sale rose up to $35,4 million.

A bankruptcy auction has been held on the 30th of March, for the acquisition of both Louisiana Pellets and Texas Pellets, where the company participated.

As reported by Digital Look, this was successful in its bid for Louisiana Pellets, but the auction of Texas Pellets was postponed. Louisiana Pellets is expected to provide additional biomass pellet capacity of 450,000 tonnes per year, as part of Drax's strategy to build a flexible supply chain capable of self-supplying 30% of production.

Drax chief executive Dorothy Thompson 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."

Following an upgrade, the plant is expected to return to working capacity by early 2018.

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