Drax complete Louisiana Pellets acquisition
Drax has announced that it has completed its acquisition of Louisiana Pellets, a 450 000 tonne per annum facility in the US.
UK power major Drax Group has announced that it has completed the acquisition of Louisiana Pellets in the US. Earlier this month it had announced that been “provisionally successful” in its bid to acquire the assets of the plant with completion subject to a court hearing to approve the auction result.
This has taken place and Drax has now completed the acquisition of substantially all of the assets of Louisiana Pellets for US$35.4 million. The plant will provide additional biomass pellet capacity in the region of 450 000 tonnes per annum and is part of Drax’s strategy to build a flexible supply chain capable of self-supplying 30 percent of its generation requirement.
– 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, said Dorothy Thompson, Chief Executive Officer of Drax Group in a statement.
Louisiana Pellets is one of the US “Chapter 11” bankruptcy assets of the German Pellets subsidiaries, Texas Pellets in Woodville, Texas is the other.