Drax buys Pinnacle Renewable Energy to integrate biomass power supply chain

In Canada, British energy company Drax has agreed to acquire Pinnacle Renewable Energy at a price of C$11.30 per share, valuing Pinnacle at C$385 million.

The acquisition brings together Drax, which owns the world’s largest sustainable biomass power station in the UK, with Pinnacle, one of the leading global producers of high-quality compressed wood pellets. This Canadian-UK combination will be positioned as the world’s leading sustainable biomass supply and power generation business.

Drax already owns and operates wood pellet mills in the Southern US and, with the addition of Pinnacle’s 11 sites, will own a total of 17 pellet plants and development projects. This will give Drax the capacity to produce 4.9 million metric tons of biomass wood pellets annually from 2022, with access to four deep water port facilities and three major wood fiber baskets.