Shaping tomorrow’s energy landscape
Drax Group plc Annual report and accounts 2024
To achieve our purpose and align to net zero targets, we are working hard to deliver our strategic pillars:
Flexible generation –
supporting the system and providing energy security
Sustainable biomass –
to power the journey to net zero
Carbon removals –
to achieve global climate goals
10%
Drax Group generates
10% of UK renewable power
3,250
Employees worldwide
4Mt
Pellets produced
Our strategy is designed to realise our purpose of enabling a zero carbon, lower cost energy future.
Energy security, affordability, and the need to decarbonise economies – the energy trilemma – have remained important global themes in 2024. Our purpose – to enable a zero carbon, lower cost energy future – is well aligned with these competing priorities and we are committed to playing our part in delivering a Just Transition.
Will Gardiner, CEO
Andrea Bertone, Chair
Our purpose is well aligned with the competing priorities of energy security, affordability, and the need to decarbonise economies.
2024 was a successful year for the Group in which we delivered a strong operational and financial performance. We also made good progress with our medium-term strategy to deliver over £500 million of recurring Adjusted EBITDA from our FlexGen & Energy Solutions and Pellet Production portfolios, as well as our long-term strategy for growth.
Sustainable development
“Sustainability is the cornerstone of long-term success and fundamental to the transformation of our business. By ensuring that we source sustainable biomass, and that we embed sustainable practices into every facet of our operations, we can build lasting value for our business and the communities we serve.”
Miguel Veiga-Pestana, Chief Sustainability Officer
Reaching net zero by 2040 across our value chain.
Supporting biodiversity across our sites and in our value chain by the end of 2030.
Making a positive contribution to the lives and livelihoods of our colleagues, communities, and workers in our supply chain by 2030.
Safeguarding responsible biomass sourcing
The backbone of a net zero economy will be a zero-carbon power system. Biomass, in the form of compressed wood pellets, is a low-carbon replacement for coal that can be used at power stations to generate renewable energy.
As one of the world’s largest users of sustainable biomass for energy generation, Drax is committed to ensuring the woody biomass we source comes from forests that are managed in accordance with standards designed to support their health and growth over the long term. By doing this, we can work towards our commitment to deliver positive outcomes for climate, nature and people.
Financial/ESG highlights
£6,163m
Total revenue
(2023: £7,733m)
£1,064m
Adjusted EBITDA (1)
(2023: £1,009m)
137.5 pence
Total basic earnings per share
(2023: 142.8 pence)
£1,135m
Cash generated from operations
(2023: £1,111m)
£850m
Total operating profit
(2023: £908m)
26.0 pence
Dividend per share
(2023: 23.1 pence)
546 ktCO2e
Group carbon emissions Scope 1 and 2 (location-based)
(2023: 486 ktCO2e)
0.24
Total recordable incident rate
(2023: 0.38)
2,867 ktCO2e
Group carbon emissions Scope 3
(2023: 3,534 ktCO2e)
4.0Mt
Wood pellets produced
(2023: 3.8Mt)
7.4%
Employee engagement score (4)
(2023: 79%)
- (1) Adjusted financial performance measures are described on page 191.
- (2) Net debt is described in Alternative performance measures on page 195.
- (3) Net debt was historically defined excluding lease liabilities. We now calculate Net debt including lease liabilities. The 2023 comparative number has been updated accordingly.
- (4) Score changed to out of 10 in 2024.
