Friday, 26 October 2012

Drax to sell £180 million of shares to fund biomass conversion


Drax, the U.K.'s largest power station, is planning to raise £180 million through a new share placing to support its transformation into a predominantly biomass-fueled power generator, the company announced.

Drax plans to convert three of its six units to biomass, turning the North Yorkshire coal-fired power station into one of the largest renewable energy plants in Europe.

The company is now looking to secure capital funding for the conversion, which the company estimates will cost between £650 and £700 million. Drax today confirmed it will take on £100 million in new debt and increase its existing credit facility from £310 million to £400 million.

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