Pinnacle Renewable Energy Inc., the Canada-based supplier of sustainable wood pellets for bioenergy has been successfully acquired by Drax Group plc. Although the acquisition first announced on February, 2021, it was completed until now.
Firstly, the transaction was overwhelmingly received by both companies’ shareholders; with 95,97% of Pinnacle’s and 99,99% of Drax’s voting in favor for it. After this transaction, Drax becomes the world’s leading sustainable bioenergy generation and supply business.
Secondly, after the acquisition, the company will further expand its solutions. It operates the world’s largest sustainable power station fueled by bioenergy in the UK; while Pinnacle is a major producer and supplier of good quality compressed wood pellets.
Thirdly, after the merger, Pinnacle will operate a subsidiary of Drax’s, which will remain headquartered in British Columbia. On the other hand, Drax will absorb all the personnel of Pinnacle, including its current leadership.
Moreover, through the enlarged company Drax Group will now own or will have an interest in 17 pellet plants and development projects; those projects are located in Canada; also, the Southern U.S.; and they have a total capacity of production of 4,9 million tons of bioenergy wood pellets every year.
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Drax expanding its renewable bioenergy portfolio
In addition, Drax aims to become a world leader in bioenergy carbon capture and storage (BECCS); and to be carbon negative by 2030; this acquisition will further position the company to achieve this objective.
Furthermore, Will Gardiner, Chief Executive Officer of Drax, said. “This is an exciting and important acquisition which positions the company as the world’s leading sustainable bioenergy generation and supply business. I am delighted to welcome our new Pinnacle colleagues to our company’s family. Together we will help secure a zero carbon, lower cost, energy future by enhancing and growing sustainable bioenergy around the world.”
He also added. “We are extremely proud that through this acquisition, our company becomes the world’s leading sustainable bioenergy generation and supply company, operating across North America, the UK, Europe and Asia.”
Finally, Duncan Davies, Chief Executive Officer of Pinnacle, concluded. “Bioenergy has an important role in enhancing forest health, and we also look forward to working with the company’s team on our shared commitment to world-leading sustainability standards.”