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Dorothy Thompson, Drax Group CEO said:

“Cleaner economic growth is one of the greatest industrial opportunities of our time – with the UK’s clean economy predicted to grow at four times the rate of GDP.

“Reducing carbon in electricity generation is the fastest way to reduce emissions and ensure our economy is clean and strong. Electric cars, AI and automation all depend on a flexible, secure electricity system, which sustainable biomass and rapid response gas power stations can support.

“At Drax we are already helping growing businesses be more sustainable – the proportion of businesses choosing to use renewable electricity supplied by Haven Power, part of Drax Group, has more than tripled this year, reducing their carbon emissions by 76% compared to five years ago and saving the UK almost 1.5 million tonnes of carbon.”

Andy Koss, Drax Power CEO said:

“The Industrial Strategy highlights that there is a technological revolution underway which will be powered by electricity.

“The Northern Powerhouse region is well placed to lead the clean energy revolution, because it has the expertise, knowledge, skills and infrastructure to deliver clean growth based on decades of powering the rest of the country.

“Creating bespoke regional industrial strategies which can draw on skills and strengths available in areas like the north, will help us to maximise the opportunities and deliver real growth.

“The Northern Powerhouse region has been leading the way in new technologies such as bioenergy, offshore wind and nuclear power, and Drax alone generated £577 million for the Northern Powerhouse regional economy, supporting more than 6,000 jobs in the region in 2016.”

Dorothy Thompson Drax Group CEO said:

“Having this clarity from the Chancellor on the Carbon Price Floor will help to unlock further investment in low-carbon and renewable technologies ensuring that, together, we can continue creating a cleaner economy for future generations.

“Reducing carbon in our energy system is the fastest way to deliver a low-carbon economy. The carbon price floor has enabled the UK to half the amount of carbon emitted through electricity generation since 2012. The support for Electric Vehicles in the Budget demonstrates how vital low carbon electricity generation is for growth in other sectors of the economy.

“At Drax, we will now continue to explore new ways of converting our remaining coal generating units to biomass and gas, and build new rapid response gas plants. These moves will help take coal off the system quickly and cost effectively, while maintaining security of supply and increasing our ability to provide flexible services to the grid.”

• Britain’s electricity is now the 7^th cleanest, climbing 13 places in the global rankings
• Carbon price floor has driven unparalleled CO₂ reductions: Britain’s emissions from electricity almost halved (47%) between 2012-16
• Based on the findings, Drax calls on Chancellor to maintain carbon price in Budget

Britain’s electricity is now amongst the cleanest in the world – having moved 13 places up the global rankings to be placed 7^th in terms of the carbon content of its electricity among large and industrialised countries.

According to the latest Electric Insights report, produced by researchers at Imperial College London in collaboration with Drax, Britain’s shift was the biggest for any country in the league table. The most any other country moved was eight places, and this was by the Netherlands, in the opposite direction – down the leaders’ table.

The analysis shows that the UK’s carbon price has helped deliver unparalleled carbon reductions – its charge on greenhouse gas emissions has driven uptake in renewables and a shift away from coal to gas-fired power generation.

Dr Iain Staffell, from Imperial College London explained: “Since we started Electric Insights a year ago we have seen a number of ‘firsts’ across the power sector and this quarter is no different – Britain has entered the world’s top ten low carbon power league for the first time.

“Britain is reducing its carbon emissions from electricity faster than any other major country, and this has happened because the carbon price and lower gas prices have forced coal off the system – the amount of coal-fired power generation in Britain has fallen 80% between 2012 and 2016.  In the Netherlands, coal-fired electricity output has risen 40% over the same period as generators only have to pay the much lower European carbon price.”

The carbon price floor is set by the UK Government. Power generators in the UK are charged £23 per tonne of carbon dioxide (CO₂) produced, compared to £5 per tonne in Europe. The six countries with lower carbon electricity than Britain benefit from substantial hydropower resources or, in the case of France, a heavy reliance on nuclear.

Andy Koss, Drax Power CEO said: “The analysis by Dr Staffell and the team at Imperial College London shows quite clearly the impact Britain’s carbon price has had in terms of helping to ensure we produce cleaner power for the UK’s homes and businesses.

“It’s therefore vital that we maintain a meaningful carbon price when the Chancellor announces the Autumn Budget, if we are to meet our commitments on climate change. Without it we could see a reversal of the impressive results achieved so far – look at what’s happened elsewhere.”

Britain’s carbon emissions from electricity almost halved (47%) between 2012-16, and the carbon impact of Britain’s electricity has fallen more than twice as fast as any other major economy.

New coal power stations were built in the Netherlands between 2013 and 2016, leading to a dramatic increase in their coal consumption and carbon emissions.

Drax has upgraded half of its power station in North Yorkshire to use sustainable biomass, transforming it to become the biggest single site renewable generator in the UK and the largest decarbonisation project in Europe.

The report has been shared with HM Treasury as further evidence to support carbon pricing ahead of the Autumn Budget on 22 November 2017.

Country comparisons

 Norway, Sweden and France have the cleanest power systems among large and industrialised countries due to their mountainous terrain allowing for substantial hydropower resources and a heavy reliance on nuclear in France, with 58 reactors.

India and South Africa have the dirtiest power sectors on the list, with 75-90% of their power generated by coal.

Figure 1 Local carbon electricity league table – risers, fallers and non-movers between 2012-6

Media contacts:

Ali Lewis

Drax Group Head of Media Relations

E: [email protected]

T: 01757 612165

Jessica Gorton

Drax Group Press Officer

E: [email protected]

T: 01757 612848

Editor’s notes 

Top ten cleanest electricity systems in 2016 (grams of carbon per kilowatt hour of electricity produced) and their carbon reduction rate since 2012:

Figure 2

British energy business Drax Group contributed almost £1.7 billion towards UK GDP in 2016 and supported thousands of jobs across the country, including £419 million in the Yorkshire and Humber region.

The findings were revealed in a new report 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 seen three of its six generating units converted in recent years to use compressed wood pellets, generated 16% of the country’s renewable electricity in 2016 – enough for four million households, the equivalent of Leeds, Manchester, Sheffield and Liverpool.

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: “This new report demonstrates that as well as playing a vital role as the country’s biggest 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 6,000 jobs across the North of England last year and generated more than £1/2 billion in economic activity. Drax works with hundreds of businesses across the Northern Powerhouse region to ensure millions of homes across the country have the power they need each day.

“The North of England has a rich heritage in providing energy to the rest of the UK. Companies like Drax have an important role to play in delivering a low carbon economy as part of the Government’s wider industrial strategy for the country”.

Alan Waddington, Managing Director of TEi Ltd, a leading engineering company based in Wakefield, said:

“Our specialist team of engineers have been working at Drax Power Station for a number of years, using their technical knowledge to support its transition to become the largest source of renewable power in the country.

“As a British business we are proud to support this nationally significant asset that generates enough clean electricity to power Leeds, Manchester, Sheffield and Liverpool.”

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 £1.7 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 contact:

Jessica Gorton

Press Officer

Drax

07712 677177

[email protected]

Notes to editors:

About Drax Group

Drax Group plc plays a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low carbon future. Drax operates the largest power station in the UK, based at Selby, North Yorkshire and supplies 7 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.  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 Biomass, based in the US and manufactures compressed wood pellets produced from sustainably managed working forests.

Haven Power, based in Ipswich, providing businesses with electricity.

Opus Energy, based in Oxford, Northampton and Cardiff, providing electricity and gas to businesses.

Billington Bioenergy, based in Liverpool with depots across the UK, is one of the leading distributors of wood pellets for sustainable heating in the UK.

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.

British energy business Drax Group contributed almost £1.7 billion towards UK GDP in 2016 and supported over 18,500 jobs across the country. The findings were revealed in a new report looking at the economic impact of Drax’s UK operations, which includes Drax Power Station – a nationally significant energy asset that provides power to six million homes.

Researchers at Oxford Economics found that Drax Group’s contribution to the British economy has increased by 34% year-on-year following the Group’s acquisition of Opus Energy, a large retail company which supplies energy to businesses.

Based on Drax’s operations in the energy sector and its use of British businesses across its supply chain, the report estimates that the company contributed £1.67 billion to the economy and supported 18,500 jobs last year, a rise from 14,150 in 2015. The vast majority of this impact is felt outside London and the South East – of the £1.67bn Gross Value Added by Drax Group only £155m was in London, meaning 90% of the Group’s economic impact was experienced outside of the capital.

Employment supported by Drax’s activities covered a wide range of sectors including high-skilled manufacturing of industrial components, engineering and technical machinery, construction, IT, professional business services and transport.

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.

A breakdown of the GDP generated by Drax Group shows all regions of the UK benefited. Highlights include:

• £419 million created in Drax’s heartland of Yorkshire and the Humber, where its power station is located.
• 760 jobs for the North East and £59m contributed to the local economy.
• £232 million generated in the East of England, where one of Drax Group’s business retail suppliers, Haven Power, is based.
• 1,600 jobs supported and £130 million generated in Wales, the home of Drax Group’s recently acquired business retail supplier, Opus Energy’s Cardiff offices
• 900 jobs supported in Scotland and £76 million generated in its economy.
• 950 jobs sustained and £83 million contributed to GDP in the South West.

Drax Group CEO, Dorothy Thompson, said: “As a British energy company, we are committed to working with UK businesses right across our supply chain. This report shows that Drax now supports more than 18,500 jobs across the UK and with our new business strategy in place, we believe we will boost this number further.

“With the power station’s sophisticated supply chain and our growing retail business, we are making a positive economic contribution in every region of the UK. We are an important player in an energy sector that is crucial to delivering a low carbon economy as part of the Government’s wider Clean Growth Strategy for the country.

“Since upgrading half of the power station to use sustainable biomass instead of coal, Drax is the UK’s biggest single site generator of renewable power – producing enough for four million households.

“We are also exploring options for a coal-free future, including the repowering of our remaining coal generating units either to biomass or to gas, with battery storage of up to 200MW.

“If developed these options for gas and battery storage show how we could upgrade our existing infrastructure to provide capacity, stability and essential grid services, as we do with biomass.

“This will allow more renewable energy sources onto the system, paving the way for increased carbon savings across the UK as a whole and helping us to meet the government’s ambitions for a coal-free system by 2025.”

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 £1.7 billion in GDP last year, and sustained thousands of jobs across the nation.

“In addition, the implementation of the Group’s new strategy means that Drax is uniquely placed to impact the wider challenges for the UK’s energy system through helping to balance the Grid.

“The Opus Energy acquisition solidifies Drax’s principal activities of generating energy and supplying energy services to businesses and directly impacts a number of different regions in the UK in terms of both job creation and contribution to GDP.”

ENDS

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

Regional press releases:

• Northern England
• Yorkshire and the Humber
• Cardiff
• Oxford
• Northampton
• Ipswich

Media contact:

Jessica Gorton

Press Officer

Drax

07712 677177

[email protected]

Notes to editors:

About Drax Group

Drax Group plc plays a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low carbon future. Drax operates the largest power station in the UK, based at Selby, North Yorkshire and supplies 7 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.  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 Biomass, based in the US and manufactures compressed wood pellets produced from sustainably managed working forests.

Haven Power, based in Ipswich, providing businesses with electricity.

Opus Energy, based in Oxford, Northampton and Cardiff, providing electricity and gas to businesses. The Opus Energy acquisition was part of the company’s new business strategy, which focuses on providing greater flexibility to the country’s electricity grid, to complement the rise in generation from intermittent renewables such as wind and solar, as well as diversifying earnings through its retail businesses and helping companies in the UK to be more sustainable

Billington Bioenergy, based in Liverpool with depots across the UK, is one of the leading distributors of wood pellets for sustainable heating in the UK.

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: draximpact.co.uk/public/Oxford_Economics-Economic_impact_of_Drax_in_the_UK_2016.pdf