StockMarketWire.com - Power company Drax said it had agreed to acquire a 20% stake in Alabama Pellets, the joint venture which owns the Demopolis and Aliceville pellet plants, from The Westervelt Company, for $29.7 million.

The acquisition would increase the group's interest in Alabama Pellets to 90% and provide 'Drax with economic control over a further c.130,000 tonnes of biomass production capacity per annum,' the company said.

The acquisition of Pinnacle Renewable Energy, expected to be completed in July 2021, included a change of control provision over Alabama Pellets.

'Drax has been in discussions with Alabama Pellets joint venture partners regarding future working relationships, including their minority interests. The remaining joint venture partner, Two Rivers Lumber Co., LLC, holds a 10% economic interest,' the company said..

'Demopolis and Aliceville are located in Alabama, in the US southeast, close to the Group's existing US operations and have a combined nameplate production capacity of 660,000 tonnes per annum. Aliceville was commissioned in 2018 and Demopolis is expected to be commissioned in 2021,' it added.


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