Drax strikes multi-year supply deal with Pathway Energy
Drax Group
650.00p
12:29 12/12/24
Power firm Drax has struck a multi-year deal with Pathway Energy for the supply of biomass pellets to the latter's proposed sustainable aviation fuel project in the US.
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Drax said on Thursday that it will supply more than 1.0m tonnes of sustainable biomass pellets to the plant per annum and noted that the agreement could potentially lead to it becoming a strategic partner in the project.
The FTSE 250-listed group added that it may also look to make a potential investment of up to $10.0m in the project by way of a convertible loan note. However, it highlighted that no investment decision has been made as of yet.
The plant was expected to begin construction in 2026, while the beginning of commercial production was pegged for 2029.
As of 0925 GMT, Drax shares were up 1.26% at 643.50p.
Reporting by Iain Gilbert at Sharecast.com