Apollo’s Graanul Nears Deal to End Wood Pellet Dispute With Drax
- Disagreement arose over biomass pellet price in energy crisis
- Resolution of dispute could mean higher biomass costs for Drax
Wood pellets are delivered to the Drax power station near Selby, UK.
Photographer:Simon Dawson/BloombergThis article is for subscribers only.
Wood pellet supplier Graanul Invest AS is inching closer to ending a price dispute with UK biomass generator Drax Group Plc, according to people familiar with the matter.
Graanul, backed by Apollo Global Management, has been in negotiations over the price of pellets delivered to Drax, which operates a major biomass-fired power plant, said the people, who asked not to be identified because they’re not authorized to speak publicly. A resolution could mean higher costs for Drax.