LONDON (ShareCast) - (Sharecast News) - Power generation business Drax Group said on Tuesday that its Pinnacle Renewable Energy subsidiary had agreed to acquire the pellet sales contract book of Pacific BioEnergy Corporation, adding 2.8 megatonnes of orders for sustainable biomass supply to high-quality counterparties in Japan and Europe.
Drax stated its new contracts were for delivery between 2022 and the mid-2030s, with total incremental revenues over the contract period somewhere in the vicinity of CAD $675.0m (£399.06m).

The FTSE 250-listed firm stated the deal complemented its existing supply contracts to Asian counterparties and European generators, and that it increased its long-term third-party sales book by 15%, to around 23.0Mt, with total revenues of over $4.5bn.

Chief executive Will Gardiner said: "This deal supports Drax's ambition to double our sales of sustainable biomass by 2030 to markets in Asia and Europe where demand for biomass is increasing as countries transition away from coal. It also demonstrates Drax's commitment to the growth of sustainable biomass in Japan specifically, where we expect to establish a new office in 2022."

Drax added that it aims to double sales of biomass to third parties to at least 4.0Mt per annum by 2030, developing its market presence in Asia and Europe, facilitated by the creation of new business development teams in Tokyo and London during 2022.

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