Drax sells wood pellets distribution company
Drax has today agreed the sale of Billington Bioenergy, a distributor of wood pellets in the UK heating market, to Aggregated Micro Power Holdings for £2m.
Consideration for the transaction comprises of £1.6m of shares in AMPH and £0.4m cash. Aggregated Micro Power Holdings is an AIM listed energy company specialising in the sale of wood fuels and the development of distributed energy assets, including biomass boilers and battery storage.
Dorothy Thompson, Chief Executive of Drax Group, 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.”
The sale of BBE is aligned with Drax’s retail strategy, focused on the energy markets. However, through its shareholding in AMPH, Drax will retain an interest in the UK heating market, whilst gaining exposure to the development of small-scale distributed energy assets.
