Europe/Japan – Drax subsidiary Pinnacle Renewable Energy has agreed to acquire Pacific BioEnergy Corporation’s pellet sales contract book, adding 2.8 million tonnes of orders for sustainable biomass supply to high-quality counterparties in Japan and Europe.
0.3Mt of these contracts will be delivered in 2022, with the rest due in the mid-2030s. Over the course of the contract, approximately C$675 million in additional revenue will be generated.
To go along with its existing supply contracts with Asian and European counterparts, the deal brings the Group’s long-term third-party sales book up to about 23Mt and over US$4.5 billion in revenue. Drax aims to double its biomass sales to third parties to at least 4 million tons per year by 2030, with the creation of new business development teams in Tokyo and London in 2022, which will help the company expand its market presence in Asia and Europe.
Drax is a major producer, supplier, and user of biomass, with nearly 20 years of experience in biomass operations and long-term relationships with suppliers across the supply chain. Group innovation in coal to biomass engineering, supply chain management and leadership in negative emissions can be used to support customers on their decarbonization journeys through long-term partnerships with the Group’s large, reliable and sustainable supply chain.