Drax was formerly a coal-fired generator but has since transformed itself into the UK’s largest renewable power generator by replacing much of its coal capacity with biomass. It sources sustainable biomass through Drax Biomass and supplies renewable electricity to businesses through Haven Power. The company has now acquired Billington Bioenergy Ltd (BBE) and will benefit from BBE’s experience and extensive network, providing Drax with an opportunity to grow a significant market for wood pellets as a source of sustainable heat in the UK.
Although wood pellets are widely used throughout Europe, their use has only recently begun to increase in the UK, supported by the government’s Renewable Heat Incentive (RHI). The UK market is anticipated to grow from the current level of around 200 thousand tonnes in 2013 to more than 1 million tonnes per year in 2020.
“This is an exciting opportunity to help transform the UK heat market in the same way we have made the UK power market so much less dependent on high carbon fossil fuels” said Dorothy Thompson, Chief Executive of Drax Group. “Biomass is a cost-effective, low carbon and dependable source of heat which homes and businesses can rely on. BBE is a great business, it shares our customer service ethos and unswerving commitment to sustainability so I am delighted to be working with them.”
Roger Pearson, Managing Director of BBE, added that the acquisition is great news for BBE customers and suppliers and that the company has been really impressed by Drax and their commitment to quality, customer service and sustainability.
According to Edward Billington, BBE Strategy Director, Drax has made it clear that it wants to play a key role to develop the UK marketplace for sustainable wood pellet heating in the long term. BBE will continue to operate from its Liverpool office and all the team and existing arrangements will remain unchanged.
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