Drax targets world leading renewable role

DRAX has today said it is on track to become one of the world’s largest renewable generators.

The Yorkshire power station operator announced it has delivered good operating performance and is investing “significant” capital to ”transform” the business.

In its half year results for the six months ended June 30 2013, Drax reported pre-tax profit of £206.6m compared to £141.2m in the same period last year and operating profit up to £213.6m compared to £146.6m.

EBITDA is down to £120m from £154m in the same period last year but the group said this was in line with expectations.

Dorothy Thompson, chief executive of Drax, said: “Profits for the first half of the year are lower than profits in the first half of 2012, but in line with expectations.

“At the beginning of this year, we entered into Phase III of the EU ETS and no longer receive a free carbon allocation. In addition, the UK carbon tax came into effect in April. As a result our carbon costs are higher, with a consequent impact on our profits.”

Drax’s first converted unit was commissioned at the beginning of April, generating electricity from sustainable biomass in place of coal.

Thompson said: “In the first half of 2013 we have delivered good operating performance across the business during a period of extensive activity at the Drax site. The highlight of the first six months of the year is undoubtedly the conversion of our first generating unit to burn sustainable biomass in place of coal. 

“The unit, which is the largest converted unit in the world, has been operating safely and delivered expected performance, using the interim storage and delivery systems in place. We will start commissioning the new bespoke systems later this year.
 
“We are investing significant capital this year and next to transform our business, with earnings during this period impacted by the increasing costs of carbon.”