British power producer Drax has announced its to buy Canadian biomass supplier Pinnacle Renewable Energy.
The deal, worth C$741 million (£422m) including debt, is expected to support Drax’s biomass strategy by more than doubling its biomass production capacity.
Pinnacle operates 2.5 million tonnes of biomass capacity at sites in Western Canada and the Southeastern US, with a further 0.4 million tonnes of capacity in development.
Will Gardiner, Chief Executive Officer of Drax, said: “I am excited about this deal which positions Drax as the world’s leading sustainable biomass generation and supply business, progressing our strategy to increase self-supply, reduce our biomass production cost and create a long-term future for sustainable biomass.
“It will pave the way for our plans to use Bioenergy with Carbon Capture and Storage (BECCS), and become a carbon negative company by 2030, permanently removing millions of tonnes of carbon dioxide from the atmosphere each year.
“Negative emissions from BECCS are vital if we are to address the global climate emergency whilst also providing renewable electricity needed in a net zero economy, supporting jobs and clean growth in a post-Covid recovery.”