Drax Sells UK-Based Wood Pellet Distribution Business

Power giant Drax has agreed to sell its wood pellet distribution business, Billington Bioenergy (BBE), to Aggregated Micro Power Holdings, an AIM-listed energy company specializing in the sale of wood fuels and the developing of distributed energy assets. Drax said the consideration for the transaction was £2m (€2.24m), comprised of £1.6m of shares in AMPH […]

Power giant Drax has agreed to sell its wood pellet distribution business, Billington Bioenergy (BBE), to Aggregated Micro Power Holdings, an AIM-listed energy company specializing in the sale of wood fuels and the developing of distributed energy assets.

Drax said the consideration for the transaction was £2m (€2.24m), comprised of £1.6m of shares in AMPH and £0.4m of cash. Drax said the sale was aligned with its retail strategy, focused on the  I&C and SME energy markets.

However, through its shareholding in AMPH, Drax would retain an interest in the UK heating market, while gaining exposure to the development of small-scale distributed energy assets.

Chief executive Dorothy Thompson said: “We are pleased with the sale of BBE and our investment in AMPH. With their leadership in the UK wood pellet heating market, we believe they are the right partner to take forward and grow BBE, whilst supporting the UK’s transition to a low carbon economy. We look forward to working with AMPH.”

The news comes as UK wood pellet specialist Forest Fuels announces that it will join forces with Billington Bioenergy under the ownership of AMP. While the two brands will continue to operate independently, behind the scenes they will immediately combine their expertise and distribution resources. This will enable them to offer unbeatable quality wood fuel supply across the whole of the UK.

From Bioenergy Insight: http://www.bioenergy-news.com/display_news/13051/drax_sells_ukbased_wood_pellet_distribution_business/

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