Power generation giant Drax has sold Billington Bioenergy (BBE), a distributor of wood pellets in the UK heating market, to an AIM listed energy company for £2m.
BBE has been sold to Aggregated Micro Power Holdings (AMPH), which specialises in the sale of wood fuels and the development of distributed energy assets, including biomass boilers and battery storage.
The deal is worth £2m and is comprised of £1.6m of shares in AMPH and £400,000 of cash.
Drax said the move is aligned with its retail strategy, which is focusing on industrial and commercial and SME markets.
However, through its shareholding in AMPH, Drax will retain an interest in the UK heating market.
Dorothy Thompson, chief executive of Drax Group, said: “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.”