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The findings were revealed in analysis by Oxford Economics looking at the economic impact of Drax’s UK operations, which includes Selby-based Drax Power Station. The Power Station, which employs around 900 people and has converted four of its six generating units to use compressed wood pellets, generated 15% of the country’s renewable electricity in 2017 – enough for four million households.

Researchers at Oxford Economics used three measures to calculate Drax’s GDP contribution: the economic activity associated with the day-to-day running of the business; the activity created by the purchase of goods and services from its suppliers; and the wages the company’s employees and suppliers’ employees spend in their local area.

In the past year, Drax Power Station’s activities have supported employment in a wide range of sectors including high-skilled manufacturing of industrial components, engineering and technical machinery, construction, IT, professional business services and transport.

Drax Power CEO, Andy Koss said:

Andy Koss

“This new report shows that as well as being of major significance nationally as the country’s biggest renewable power generator, Drax Power Station continues to play a crucial role in supporting the Yorkshire economy.

“Thanks to a sophisticated supply chain that spans both the east and west coasts of the country, Drax supported over 5,700 jobs across the North of England last year, including 3,200 in Yorkshire, and generated £600 million in economic activity. Drax works with hundreds of businesses across the Northern Powerhouse region to ensure millions of UK homes and businesses have the power they need each day.

“The North of England has a rich heritage in providing energy to the rest of the UK. Drax continues to play a vital role in providing the country with flexible, low carbon generation, to support the system as it continues to decarbonise. Our strategy for moving beyond coal is enabling us to preserve the life of the power station, protect jobs and ensure we continue to make an important contribution to the region’s economy.”

The conversion of a fourth generating unit at Drax from coal to biomass helped the UK reach another green milestone this year as the power generating capacity available from renewables surpassed fossil fuels for the first time.

It is also about to start the first bioenergy carbon capture and storage pilot project of its kind in Europe, using technology developed by Leeds University spin-out company C-Capture.  If successful, the technology could enable the power produced at Drax to become carbon negative, meaning it helps reduce the carbon dioxide accumulating in the atmosphere. Negative emissions are vital if we are to meet our future climate targets.

Nigel Adams, MP for Selby and Ainsty said,

“Drax is a key economic asset both in Selby and nationwide. As the country’s single largest generator of renewable electricity, the business is a key part of the local community and supports employment and skills in the region. Drax has a rich history but has been keen to look to the future and further ways in which it can continue to innovate, enriching our community.”

Osman Ismail, Senior Economist at Oxford Economics, said:

“Drax Group makes an important economic contribution to Yorkshire and the Humber, and the UK more widely. Its activities generated almost £1.6 billion in GDP last year, and sustained thousands of jobs across the nation.”

ENDS

Full details of the study can be found at draximpact.co.uk

Media contacts:

Ali Lewis
Drax Group Interim Head of Media & PR
E: [email protected]
T: 07712670888

Jessica Gorton
Drax Group Press Officer
E: [email protected]
T: 07712677177

Notes to editors:

• Drax’s acquisition of Scottish Power’s generation assets is expected to complete at the end of the year, subject to shareholder approval.
• Drax recently converted the fourth of its six generating units from coal to use sustainable biomass – around 70% of the power produced at the power station is now renewable.
• It has plans to repower its two remaining coal generating units to use gas, which are being considered by the planning inspectorate. If approved, Drax could stop using coal well ahead of the government’s 2025 deadline.

About Drax

Drax Group plc plays a vital role in helping change the way energy is generated, supplied and used. Its 2,300-strong staff operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

The Group includes:

Drax Power Ltd, which operates the largest power station in the UK, based at Selby, North Yorkshire and supplies six percent of the country’s electricity needs. The energy firm converted from burning coal to become a predominantly biomass-fuelled electricity generator. Drax is the biggest single site renewable generator in the UK and the largest decarbonisation project in Europe.

Haven Power, based in Ipswich, supplies electricity to large Industrial and Commercial sector businesses.

Opus Energy, based in Oxford, Northampton and Cardiff, provides electricity and gas to small and medium sized (SME) businesses.

Drax Biomass, is based in the US and manufactures compressed wood pellets produced from sustainably managed working forests, supplying fuel used by Drax Power Station in North Yorkshire to generate flexible, renewable power for the UK’s homes and businesses.

For more information visit www.drax.com 

About Oxford Economics

Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modelling to UK companies and financial institutions expanding abroad. It is now one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Its best-of-class global economic and industry models and analytical tools give an unparalleled ability to forecast external market trends and assess their economic, social and business impact.

About the study

Oxford Economics assessed the economic benefits of Drax Group using a standard means of analysis, called an economic impact assessment. This approach is applied in each of the three stages of the study.

The full report can be viewed here: https://www.draximpact.co.uk/public/Oxford_Economics-Economic_impact_of_Drax_in_the_UK_2017.pdf

If approved, the application would enable us to repower up to two existing coal-fired generating units (Units 5 and 6) at Drax Power Station with new gas turbines as well as build new battery storage and associated development.

Following a preliminary hearing on 1 October in Goole Leisure Centre, which interested parties were able to attend, the Inspectorate’s examination officially commenced on 4 October.

As part of this process, a number of hearings will take place in early December focusing on different aspects of the project.

These are as follows:

• Tuesday 4 December
  • Open Floor Hearing, 3pm
• Wednesday 5 December
  • Issue Specific Hearing, 10am
• Thursday 6 December
  • Issue Specific Hearing, 10am (DCO only)
  • Compulsory Acquisition Hearing, 2pm

A notice informing the public of these hearings has been placed in the Selby & Goole Times.

For more information on these hearings please contact the Case Manager for this application, Michele Smith, through the following:

• Post: National Infrastructure Planning, Temple Quay House, 2 The Square, Bristol BS1 6PN
• Email: [email protected]

Two dozen honey bee colonies were established on the 350-acre nature reserve which forms part of the Drax site near Selby in the summer – and the busy insects have already produced enough honey to fill 350 jars, with more expected next year.

The latest nature project to take place on the Barlow Mound reserve which forms part of the Drax Power Station site saw West Yorkshire-based businessman Chris Holmes move the 24 hives into place in July as an initial trial. He has seen immediate success, with 300lbs of Barlow Mound Honey already produced.

Chris, who set up his business, Stickeys, in 2008, will now maintain the colonies over the winter ready for next year, when the bee population in the two dozen hives is expected to grow to more than a million and produce up to 2,000 jars of the sticky breakfast favourite.

Barlow Mound was developed at Drax from the early 1970s and has become a major nature reserve in the area, home to a variety of wildlife and plant life, and a valuable educational resource for schools, colleges and local nature groups.

The bees live on the reserve, just a few hundred yards from the power station, which is the biggest renewable power producer in the country and the largest decarbonisation project in Europe, producing enough renewable electricity to power around four million homes.

And the honey they have produced has already received the thumbs up for taste from staff at Drax including Andrew Christian, whose role at the power plant includes managing the Barlow Mound reserve and who worked with Chris on introducing the bees.

“I’m really proud that we’ve managed to bring the bees in and help enhance the ecology of the nature reserve still further. It’s just one more way in which we’re able to keep developing Barlow Mound and to get something as tasty as this as a result is a bonus,” said Andrew, who has already bought some of the honey for his own breakfasts.

“Working closely with our ecologists, we’re always looking for new ways to improve the biodiversity of the site and we thought that bees would be a great idea. Chris came highly recommended to us and it’s been a great success so far. It’s one more way to show that there’s more to Drax and the honey is absolutely delicious.”

Chris, who runs his business from his home in Flockton, near Wakefield, said:

“You might not expect a power station to be somewhere where bees would live but the site is absolutely perfect.

“Barlow Mound has got all the plants and pollen that honey bees need and it’s just an ideal location for them to thrive. It’s also a secure site which means the bees are safe and will be left alone to do their own thing, which is also important, and Drax have been brilliant in helping me to get this established.

“It’s now heading into winter so the bees won’t be producing any more honey until next year but when they do, I’m hoping it will be a really productive site for us. I hope this will be the start of us producing honey at Drax for many years to come.”

Each of the 24 colonies will be home to up to 50,000 bees when fully established, with each hive producing an expected 60lbs of honey a year, though that amount could increase or decrease depending on the weather conditions.

The bees’ site overlooks the power station, which recently converted the fourth of its six generating units from coal to running on renewable biomass. It has plans to repower its two remaining coal units to use gas, and be off coal ahead of the government’s 2025 deadline.

Drax is also scheduled to begin an innovative Bioenergy Carbon Capture and Storage pilot project later this year which could help the power station deliver negative emissions, essential if the world is to tackle climate change.

For more information or to buy any Stickeys honey, including Barlow Mound Honey, visit www.stickeys.co.uk

-ENDS-

Media contacts:

About Drax

Drax Group plc plays a vital role in helping change the way energy is generated, supplied and used. Its 2,300-strong staff operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

The Group includes:

Drax Power Ltd, which operates the largest power station in the UK, based at Selby, North Yorkshire and supplies six percent of the country’s electricity needs. The energy firm converted from burning coal to become a predominantly biomass-fuelled electricity generator. Drax is the biggest renewable generator in the UK and the largest decarbonisation project in Europe.

Haven Power, based in Ipswich, supplies electricity to large Industrial and Commercial sector businesses.

Opus Energy, based in Oxford, Northampton and Cardiff, provides electricity and gas to small and medium sized (SME) businesses.

Drax Biomass, is based in the US and manufactures compressed wood pellets produced from sustainably managed working forests, supplying fuel used by Drax Power Station in North Yorkshire to generate flexible, renewable power for the UK’s homes and businesses.

For more information visit www.drax.com

Mr Johnson, the Ambassador of the United States of America to the United Kingdom of Great Britain and Northern Ireland had a tour of the power station and heard about how Drax upgraded two thirds of its generating units to use sustainable biomass instead of coal, to become the biggest decarbonisation project in Europe.

Around 60 per cent of the biomass used by Drax to produce enough renewable electricity for four million households, comes from the sustainable working forests of the US South – making it the biggest importer of US agricultural products.

Drax also operates three pellet plants in the US South, which produce biomass for the power station in North Yorkshire.

Mr Johnson met with Drax Group CEO Will Gardiner and Drax Power CEO Andy Koss to hear about the transformation of the power station and their plans for the future.

He heard about their plans for a Bioenergy Carbon Capture and Storage pilot project, due to get underway this autumn, which if successful, could enable the power produced at Drax to become carbon negative – making a vital contribution to efforts to tackle climate change.

They also outlined proposals to repower the two remaining coal units to use gas and develop up to 200MW of battery storage, as well as the proposed £702 million acquisition of some of Scottish Power’s flexible and renewable power generation assets, including pumped storage and hydro, which Drax announced recently.

Mr Johnson said:

“Being here at Drax has been fascinating – the scale of the place is incredible, and the innovative projects and new technology being trialled here are very exciting.  

“Drax makes a really important contribution to the US economy – I am pleased to be here to mark the important investment they make.”

Will Gardiner, Drax Group CEO, said:

“We are delighted to welcome the Ambassador to Drax Power Station to celebrate the successful transatlantic relationship between Drax and the US, which plays a vital role in enabling us to source the biomass needed to produce enough flexible, renewable power for millions of homes and businesses in the UK.

“We play a valuable role in the communities where we operate in the US, creating jobs and breathing new life into areas previously affected by industrial decline. Since the acquisition of a third pellet mill we now employ almost 250 people over there, with plans to grow our self-supply of biomass so we’re producing up to 30% of the pellets used at the power station.”

L-R: Drax Power CEO Andy Koss, Ambassador Johnson, Drax Group CEO Will Gardiner and Stan Phillips,
Agricultural Counselor

Andy Koss, Drax Power CEO added:

“One of the biggest challenges we had when we converted two thirds of the power station to use biomass instead of coal, was in creating a completely new global supply chain for biomass.

“We invested around £700m in new infrastructure both here at the power station, but also in the pellet mills we own and the port facilities we use in the US – all of that has been vital to the success of the transformation of the business. We’re now the UK’s biggest renewable power producer, generating around 15% of the country’s renewable electricity.”

Drax contributed around £1.7bn in GDP to the UK economy and supported more than 18,500 jobs here in 2016. That included more than £500m to the Northern Powerhouse’s regional economy and support for 6,000 jobs here.

ENDS

Media contact:

Jessica Gorton

Drax Group Press Officer

E: [email protected]

T: 07837 946802

Notes to editors:

• Main photo L-R: Drax Group CEO Will Gardiner, Ambassador Johnson, Drax Power CEO Andy Koss and Stan Phillips, Agricultural Counselor
• Drax’s acquisition of Scottish Power’s generation assets is expected to complete at the end of the year, subject to shareholder approval.
• Drax recently converted the fourth of its six generating units from coal to use sustainable biomass – around 70% of the power produced at the power station is now renewable.
• It has plans to repower its two remaining coal generating units to use gas, which are being considered by the planning inspectorate. If approved, Drax could stop using coal well ahead of the government’s 2025 deadline.

About Drax

Drax Group plc plays a vital role in helping change the way energy is generated, supplied and used. Its 2,300-strong staff operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

The Group includes:

Drax Power Ltd, which operates the largest power station in the UK, based at Selby, North Yorkshire and supplies six percent of the country’s electricity needs. The energy firm converted from burning coal to become a predominantly biomass-fuelled electricity generator. Drax is the biggest single site renewable generator in the UK and the largest decarbonisation project in Europe.

Haven Power, based in Ipswich, supplies electricity to large Industrial and Commercial sector businesses.

Opus Energy, based in Oxford, Northampton and Cardiff, provides electricity and gas to small and medium sized (SME) businesses.

Drax Biomass, is based in the US and manufactures compressed wood pellets produced from sustainably managed working forests, supplying fuel used by Drax Power Station in North Yorkshire to generate flexible, renewable power for the UK’s homes and businesses.

For more information visit www.drax.com

“The UK has a great track record on greenhouse gas reduction, but this research from Aurora provides a clear indication of the environmental risks associated with us not maintaining a strong carbon price – in particular a resurgence in coal generation. It is important that the Treasury stands by the government’s commitments when setting the Budget, to ensure the UK continues to decarbonise cost-effectively and deliver the clean growth we need to meet our climate targets.”

View the research: Carbon Pricing Options to Deliver Clean Growth