Drax announced that its subsidiary Pinnacle Renewable Energy Inc. has agreed to acquire the pellet sales contract book of Pacific BioEnergy Corporation, adding 2.8Mt of orders for sustainable biomass supply to high-quality counterparties in Japan and Europe. These contracts are for delivery between 2022 and the mid-2030s, of which 0.3Mt is for delivery in 2022. The total incremental revenues over the contract period are around CAD 675 million.

The deal complements the Group's existing supply contracts to Asian counterparties and European generators, increasing the Group's long-term third-party sales book by 15%, to around 23Mt, with total revenues of over USD 4.5 billion. Drax is a major producer, supplier and user of biomass, active in all areas of the supply chain with long-term relationships and almost 20 years of experience in biomass operations. The Group's innovation in coal-to-biomass engineering, supply chain management and leadership in negative emissions can be deployed alongside its large, reliable and sustainable supply chain to support customer decarbonisation journeys with long-term partnerships.