Drax Group has announced the acquisition of Pinnacle Renewables, a
major provider of biomass pellets based in Canada with operations in
British Columbia and Alabama. The combination will make Drax the
world’s leading biomass provider. We see biomass and carbon capture
and storage (BECCS) as the key route to the negative emissions required
to bring about a net zero world. Drax’s move should allow it to capture a
significant proportion of the value of growing demand for this solution
in our view.
