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Drax signs agreement to acquire Pinnacle Renewable Energy

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By Erin Krueger

February 08, 2021

Pellets Power UK 

Drax Group plc announced on Feb. 8 it has signed an agreement to acquire Canada-based pellet producer Pinnacle Renewable Energy Inc. The acquisition will more than double Drax's pellet production capacity.

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Drax on Feb. 1 announced that it has completed the sale of its natural gas-fueled power generation assets. The company also said it will end commercial coal generation on March 31, with formal closure of its remaining coal assets in September 2022.

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The European Commission's Joint Research Center on Jan. 25 published a report on the use of woody biomass for energy production in the European Union. The U.S. Industrial Pellet Association and Bioenergy Europe have welcomed the report.

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Velocys announced on Jan. 18 that Shell International Petroleum Co. Ltd. will no longer participate in the development of the Altalto Immingham project, a proposed 20 MMgy sustainable aviation fuel production facility under development in the U.K.

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Data released by the U.K. Department for Business, Energy and Industrial Strategy shows bioenergy capacity in the U.K. increased by 3.9 percent during the third quarter of last year, while power generation from biodegradable MSW set a new record.

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Drax on Dec. 15 announced it has reached an agreement to sell its natural gas-fueled power generation assets. The company said it will use the proceeds from the sale to develop its biomass supply chain and support its plans to become carbon negative.

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The U.K. government on Dec. 14 published a white paper that describes how the country will clean up its energy system and reach net zero emissions by 2050. BECSS and RNG will play an integral role in reaching that goal.

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The U.K. Climate Change Committee on Dec. 9 released its Sixth Carbon Budget, which provides guidance on GHG reductions needed achieve net zero emissions. The budget shows BECCS is one technology necessary to meet the U.K.'s GHG goals.

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Covanta Holding Corp., Green Investment Group Limited and Biffa plc have announced financial close and the commencement of construction on the Protos Energy Recovery Facility (Protos ERF) in Cheshire, England.

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The U.K. government on Nov. 24 confirmed that coal-to-biomass conversion projects will be excluded from future allocation rounds under its CfD scheme. Dedicated biomass with combined-heat-and-power (CHP) will continue to be eligible.

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The U.K. government on Nov. 18 issued its 10-point plan for a green industrial revolution, which addresses sustainable aviation fuels (SAF) and an accelerated phase-out of the sale of new gasoline- and diesel-fueled vehicles.

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The Port of Tyne, one of the U.K.'s leading deep-sea ports, on Nov. 5 announced a £1 million investment in its wood pellet-handling operations. The investment will help combat dust emissions from the dry wood pellets it handles into the U.K.

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Covanta Holding Corp. on Oct. 29 announced the launch of a comprehensive strategic review of the company's operations, growth priorities and capital structures. In the near term, that review is expected to focus on Covanta's waste-to-energy business.

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Drax has spoken out in support of the recently announced Northern Endurance Partnership, which aims to develop offshore carbon dioxide infrastructure in the North Sea. The partnership will benefit Drax's plan to become carbon negative.

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Biomass Magazine the leading publication for the biomass industry, recently released its 2021 media kits. Biomass Magazine is now accepting 2021 advertising schedules across its print and digital platforms.

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The U.S. EPA on Oct. 21 delivered its final rule that is expected to change how the agency considers the costs and benefits of regulations promulgated under the Clean Air Act to the White House Office of Management and Budget.

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Renewables accounted for a growing share of U.K. electricity generation during the second quarter of 2020. Generation from bioenergy was up nearly 10 percent during the period, according to data released by the U.K. government on Oct. 8.

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Jobs in the renewable energy sector reached 11.5 million globally in 2019, according to a report released by the International Renewable Energy Agency (IRENA) on Sept. 29. Bioenergy accounted for 3.58 million jobs, up from 3.18 million in 2018.

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The U.K. government has opened a public consultation an initiative that aims to scale up the production of renewable natural gas (RNG), also referred to as bioemethane or green gas, for use in heating applications.

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Drax Biomass is donating $20,000 to help families in Northeastern and Central Louisiana who were impacted by Hurricane Laura last month. The funds donated are going to hurricane relief efforts driven by the United Way and local food banks.

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U.K. renewable energy generation increased by 30 percent during the first quarter of 2020, reaching 40.8 terawatt hours (TWh), according to data released by the U.K. Department of Business, Energy and Industrial Strategy on Sept. 10.

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The European Commission on Sept. 17 released a plan that aims to reduce European Union GHG emissions by at least 55 percent by 2030 when compared to 1990 levels. The goal would put the EU on a pathway to reaching climate neutrality by 2050.

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The U.S. exported 643,727.5 metric tons of wood pellets in July, down from the 684,028.1 metric tons exported in June, but up from 451,299.1 metric tons exported during the same month of 2019, according to data released by the USDA FAS on Sept. 3

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The European Commission in August launched a public consultation on the potential revision of the 2018 Renewable Energy Directive to better align the policy with the EU's new Green Deal and its goal of making the EU climate neutral by 2050.

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Waste Knot Energy has secured funding from Gresham House's British Strategic Investment Fund to build its first fuel pelleting plant in Middlesbrough. The project will be located at AV Dawson's port facility in Teesside, U.K.

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Biomethane was connected from a farm in Cambridgeshire to the U.K. National Grid's Gas National Transmission System for the first time at the end of July. The anaerobic digestion system, operated by Biocow Ltd., produces RNG from manure and straw.

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The U.K. Department for Business, Energy and Industrial Strategy has released updated energy statistics that show renewable resources accounted for 12.3 percent of the nation's total energy consumption in 2019, up from 11.2 percent in 2018.

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GB Railfreight and Drax have agreed to extend their contract to transport supplies of sustainable biomass from U.K. ports to Drax Power Station in North Yorkshire until 2025. Drax said the deal is critical to its global biomass supply chain.

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Enviva Partners LP released second quarter financial results on Aug. 5, reporting that the operation of its wood pellet plants and terminals has not been interrupted by the COVID-19 pandemic. The company also outlined its expansion plans.

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REACT-FIRST is the U.K.'s first-ever scalable route to the sustainable generation of protein capturing the CO2 from bioenergy generation. It launches with financial support from the government in the form of £3 million funding from Innovate U.K.

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