Robust performance at Drax during tough period for UK energy network
North Yorkshire power station operator Drax Group has reported adjusted EBITDA of £731m, up 84% (2021: £398m), in its full year results for the 12 months ended 31 December 2022.
The business made a pre-tax profit of £78m (2021: £122m) and a total operating profit of £146m (2021: £197m). Capital expenditure of £255m grew 7% compared to £238m in 2021, with £127m spent on major strategic initiatives.
Will Gardiner, CEO, said the power station had played a big role in ensuring security of supply during a difficult year for the UK’s energy system.
He added: “Our renewable generation – biomass, hydro and pumped storage – are a major source of power in the UK and during periods of peak demand when there was low wind and solar power, these assets collectively supplied up to 70% of the UK’s renewable power in certain periods.
“We believe BECCS (Bioenergy with carbon capture and storage) can become a world-leading solution for large-scale high-quality carbon removals and we’re seeing increasing global policy support for its delivery.
“Drax stands ready to invest billions of pounds in the development of this technology. Following the introduction of the US Inflation Reduction Act, we are increasingly excited about the opportunities to deploy BECCS in the US.
“In response, the UK Government should accelerate its policy support for BECCS.”
Drax notes it is the UK’s largest source of renewable power by output and continues to target becoming a global leader in carbon removals.
It also aims to be a world leader in sustainable biomass – targeting eight megatons of capacity and four megatons of third-party sales by 2030.
Drax says it intends to invest in its core business and strategy, including new biomass pellet plants, the development of options for BECCS, and the expansion of its pumped storage power station at Cruachan, in Scotland.
