25 October 2017
DRAX GROUP PLC
(Symbol: DRX)
Sale of Billington Bioenergy
Drax has today agreed the sale of Billington Bioenergy1 (BBE) - a distributor of wood pellets in the UK heating market - to Aggregated Micro Power Holdings2 (AMPH), 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.
Consideration for the transaction is £2 million, comprised of £1.6 million of shares in AMPH and £0.4 million of cash.
The sale of BBE is aligned with Drax's retail strategy, focused on the I&C3 and SME4 energy markets. However, through its shareholding in AMPH, Drax will retain an interest in the UK heating market, whilst gaining exposure to the development of small-scale distributed energy assets.
Dorothy Thompson, Chief Executive of Drax Group, commented:
"We are pleased with the sale of BBE and our investment in AMPH. With their leadership in the UK wood pellet heating market, we believe they are the right partner to take forward and grow BBE, whilst supporting the UK's transition to a low carbon economy."
"We look forward to working with AMPH."
Enquiries:
Investor Relations:
Mark Strafford
+44 (0) 1757 612491
Media:
Ali Lewis
+44 (0) 1757 612165
Website: www.drax.com
END
Notes
1) Billington Bioenergy is a distributor of wood pellets for sustainable heating in the UK.
2) Aggregated Micro Power Holdings develops, owns and operates renewable energy generating facilities. It specialises in the sale of wood fuels and the installation of distributed energy projects. AMPH sells sustainable wood pellets to UK customers, while its projects division installs biomass boiler and biomass CHP systems for a range of applications and customers. AMPH is also active in developing projects for stand-by power generation and battery storage, providing peak demand response services.
3) Industrial and Commercial.
4) Small Medium Enterprise.
