Drax plans to boost UK green energy if subsidies come soon

• 12 years ago (2011-08-15)
• Junior Isles

Europe 1061 Renewables 752

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Drax Group has said it is ready to significantly boost its renewable power generation to switch the Drax power plant to mainly biomass-fuelled generation, if the UK Government makes it affordable through subsidies.

The group's plant near Selby, North Yorkshire is the largest coal-fired power station in Europe and supplies around seven per cent of the UK’s electricity. Drax has stated it wants to improve the green credentials of the huge plant by burning more biomass rather than coal, in a move hoped to extend its lifespan.

Drax generated about eight per cent of its electricity from biomass during the first six months of 2011, although this was below its 12.5 per cent capacity as the group waits for more clarity on government subsidies.

Station bosses said this equated to around six per cent of the UK’s renewable power output, making the plant the UK’s single biggest source of renewable energy.

The Drax plant is also, conversely, the UK’s biggest single source of carbon emissions. It recently reported a rise in its first-half yearly earnings but warned full-year profit would fall as coal prices continue to climb.

Earnings before interest, tax, depreciation and amortisation increased three per cent to £190 million in the first six months this year, while revenues were up 11 per cent at £866.3 million.

Drax also reports its pre-tax profits have climbed to £168.7 million from £132.2 million a year earlier.