Drax sells wood pellet business

By Joshua Hammond
Insider Media
October 25, 2017
Category: Business & Politics
Region: International

Energy giant Drax has agreed the sale of one of its subsidiaries, a wood pellet distributor, for £2m to an AIM-listed energy company. Billington Bioenergy (BBE), a distributor of wood pellets in the UK heating market, has been acquired by Aggregated Micro Power Holdings (AMPH). AMPH is an AIM-listed energy company specialising in the sale of wood fuels and the development of distributed energy assets, including biomass boilers and battery storage. Billingtons supplies circa 40,000 tonnes of premium wood pellet to commercial customers per annum, has four depots, a head office in Liverpool and employs 34 staff. The deal is worth £2m, comprised of £1.6m worth of shares in AMPH and £400,000 in cash. Through its shareholding in AMPH, Drax will retain an interest in the UK heating market, while gaining exposure to the development of small-scale distributed energy assets.

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