Drax to buy Canadian biomass producer Pinnacle

Drax has agreed to acquire Pinnacle at a price of CAD11.30 (US$8.88) per share, valuing Pinnacle at CAD385 million (US$302.6 million).

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 tonnes of biomass wood pellets annually from 2022, with access to four deepwater port facilities and three major wood fiber baskets.

Drax is the largest decarbonization project in Europe having converted the UK’s biggest coal-fired power station to use sustainable biomass, delivering carbon savings of more than 80%.