LONDON, UK: Drax Group it has agreed to acquire the remaining 10% minority interest in Alabama Pellets LLC joint venture, from Two Rivers Lumber Co LLC for a cash consideration of US$22 million.
The acquisition of Pinnacle Renewable Energy Inc. in April 2021 included a change of control provision over Alabama Pellets, in which Two Rivers held a 10% interest.
Alabama Pellets is comprised of the Aliceville and Demopolis pellet plants. Aliceville, which commissioned in 2018, has a nameplate production capacity of 300,000 tonnes per annum. Demopolis, which commissioned in 2022 and is co-located with a Two Rivers sawmill, has a nameplate production capacity of 360,000 tonnes per annum.
The acquisition will provide Drax with net economic control over a further 66,000 tonnes of sustainable biomass production capacity per annum, rights over land associated with Demopolis and extend long-term fibre supply arrangements.