Drax completes sale of natural gas-fueled assets

By Erin Voegele | February 01, 2021

Drax Group plc 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.

The company announced on Dec. 15, 2020, it had reached an agreement to sell Drax Generation Enterprise Ltd., which holds four combined cycle gas turbine (CCGT) power stations, to VPI Holding Ltd. for £193.3 million. At that time, Drax said it would use the proceeds from the sale to develop its biomass supply chain and support its plans to become carbon negative by 2030.

Drax acquired the CCGTs in December 2018. The company said the assets do not form part of its core flexible and renewable generation strategy.

A statement released by Drax in December indicates the company will continue to focus on its biomass strategy and system support services, including the development of a long-term future for sustainable biomass that is underpinned by biomass supply chain expansion and cost reduction. Drax will also continue to focus on bioenergy carbon capture and storage (BECCS).