Drax accelerates drive towards renewable energy
North Yorkshire-based energy supplier, Drax Group, has recorded adjusted EBITDA of £225m in its half year results for the six months ended 30 June 2022 (H1 2021: £186m).
The business also recorded pre-tax profits of £200m (H1 2021: £52m) and a total operating profit from continuing operations of £207m (H1 2021: £84m).
Drax says it is continuing to push forward with its plans for Bioenergy with carbon capture and storage (BECCS) technology in order to become a global leader in negative emissions.
It adds that its portfolio generated 5% of the UK’s electricity between April 2021 and April 2022 (the most recent period for which data is available) and 11% of the UK’s renewable electricity over the same period.
Will Gardiner, CEO, said: “We are accelerating our investment in renewable generation, having recently submitted planning applications for the development of BECCS at Drax Power Station and for the expansion of Cruachan Pumped Storage Power Station.
“As a leading producer of sustainable wood pellets we continue to invest in expanding our pellet production in order to supply the rising global demand for renewable power generated from biomass.
“We have commissioned new biomass pellet production plants in the US South and expect to take a final investment decision on up to 500,000 tonnes of additional capacity before the end of the year.
“In the UK and US we have plans to invest £3bn in renewables that would create thousands of green jobs in communities that need them.”
The group’s customers business performed well with Adjusted EBITDA of £24m (H1 2021: £5m loss). This is a significant improvement on 2021, which was impacted by Covid-19 – principally in the SME business.
In January 2022, Drax’s two legacy coal units were called into the Balancing Mechanism by the system operator for limited operations to support security of energy supply.
The business notes these short-term measures helped stabilise the power system during periods of system stress and did not result in any significant increase in the Group’s total carbon emissions.
Drax says it remains committed to coal closure and development of BECCS, with no change to its expected timetable.
