Completion of Acquisition of Louisiana Pellets

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

[phone]

Media:

Drax External Communications:

Paul Hodgson

[phone]

Ali Lewis

[phone]

Website: www.drax.com

Notes:

(1)   Louisiana Pellets is the owner and developer of a wood biomass pellet manufacturing facility located in Urania, Louisiana.

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