Tag: investors

Building a sustainable business

Will Gardiner, Chief Executive Officer, Drax Group

21 March 2018

Opinion

The UK energy sector is changing rapidly. The boundaries between users, suppliers and generators are blurring as energy users are choosing to generate their own energy and are managing their energy use more proactively while, conversely, generators are increasingly seeing users as potential sources of generation and providers of demand management.

“The UK is undergoing an unprecedented energy revolution with electricity at its heart – a transition to a low-carbon society requiring new energy solutions for power generation, heating, transport and the wider economy”

In that context, our Group’s purpose is to help change the way energy is generated, supplied and used for a better future. This means that sustainability, in its broadest sense, must be at the very core of what we do. Successful delivery of our purpose depends on all our people, across all our businesses, doing the right thing, every day. With the right products and services, we can go even further and help our customers make the right, sustainable energy choices.

As our businesses transform and we embrace a larger customer base, different generation technologies and operate internationally, the range of sustainability issues we face is widening and becoming more complex. At the same time, the range of stakeholders looking to Drax for responsible leadership on sustainability is increasing. The need for transparency is greater than ever, so our website’s sustainability section provides a comprehensive insight into the Group’s environmental, social and governance management and performance during 2017.

Some of the highlights include:

  • Carbon reduction: I am pleased that, in 2017, the proportion of our energy generation from renewable sources remained high. 65% of our generation during the year came from sustainable biomass and accounted for 15% of the country’s overall renewable generation. We maintained our rigorous and robust approach to ensure that we only ever use biomass that is sustainably produced and legally sourced.
  • People: Another key achievement was the roll out of our people strategy to 2020 – One Drax – which focuses on talent to deliver on our strategic and operational objectives.
  • Safety: The health and safety of all our employees and contractors is of paramount importance to Drax. While the Group’s safety incident rate remained on target in 2017, the fire at our biomass rail unloading facilities in December did cause an outage, with disruption lasting into 2018. It highlighted once again that the risks of generating using biomass must be mitigated through robust safety procedures and a risk-based plant investment and maintenance programme. Safety therefore remains at the centre of our operational philosophy and we are determined to do even better.
  • Customers: Our business to business (B2B) Energy Supply business received recognition for their dedication to customer service. Opus Energy won “Utilities Provider of the Year” at the British Small Business Awards 2017.

We initiated a process which would allow us to participate in the United Nations Global Compact (UNGC). We are committed to the initiative and its ten principles, which align with our culture of doing the right thing.

Our website’s sustainability section also sets out our commitment to achieving the United Nations’ Sustainable Development Goals through our operations, the services we deliver to our customers and in partnership with others.

Global ambitions and goals are important, but so too are our ambitions for our local and regional communities. As such, we have played a key role in the UK Northern Powerhouse Partnership, initiatives such as POWERful Women and a comprehensive programme of stakeholder engagement.

“Sustainability, in its broadest sense, must be at the very core of what we do”

Finally, I do not believe any organisation, however well intentioned, can get its commitment to sustainability perfect on its own and I am very keen for Drax to learn from people reading our website’s sustainability section. It sets out what we see as our achievements and aspects in which we believe we need to do better. I would like to invite any stakeholder with an interest to comment on what we’re doing and help us improve where we can. Feedback can be submitted at Contact us or via our Twitter account or Facebook page.

Read the Chief Executive’s Review in the Drax Group plc annual report and accounts

The sustainable development goals

Sustainable business

In 2015, the United Nations launched 17 Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all by 2030. At Drax, improved performance has guided our business purpose for over four decades. We are committed to play our part in achieving the UN SDGs through our operations, the services we deliver to our customers and in partnership with others.

Drax Group has the most significant impact on the Global Goals listed below:

Affordable and clean energy

We provide 6% of the UK’s electricity and play a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low-carbon future. In 2017, 65% of the electricity we produced came from biomass, rather than coal. Our B2B Energy Supply businesses encourage customers to be more sustainable, including through the provision of reliable, renewable electricity at no premium compared to fossil fuel-generated electricity.

Customers

Low Carbon

Decent work and economic growth

We directly employ over 2,500 people in the United Kingdom and United States and their health, safety and wellbeing remains our highest priority. Our B2B Energy Supply business offers energy solutions and value-added services to industrial, corporate and small business customers across the UK.

Society

Industry, innovation and infrastructure

We develop innovative energy solutions to enable the flexible generation and lower-carbon energy supply needed for a low-carbon future. We also innovate to improve the efficiency of our operations and increase our production capacity, notably in our biomass supply chain. Our B2B Energy Supply business offers “intelligent sustainability” and innovative products and services to our customers.

Customers

Low Carbon

Climate action

Our electricity generation activities are a source of carbon emissions. We are committed to helping a low-carbon future by moving away from coal and towards renewable and cleaner fuels, including biomass electricity generation and our planned rapid-response gas plants. We also help our business customers to be more sustainable through the supply of renewable electricity.

Low Carbon

Life on land

We source sustainable biomass for our electricity generation activities and engage proactively with our supply chain to ensure that the forests we source from are responsibly managed. We work closely with our suppliers and through tough screening and audits ensure that we never cause deforestation, forest decline or source from areas officially protected from forestry activities or where endangered species may be harmed.

Low Carbon

Sourcing

Environment

Partnerships for the goals

We engage with stakeholders regularly and build relationships with partners to raise our standards and maximise what can be achieved. Our collaborations align closely with our business, purpose and strategy.

Stakeholder Engagement

Society

Commitment to the UNGC

Sustainable business

In 2017, we initiated a process which will allow us to participate in the United Nations Global Compact (UNGC) a global sustainability initiative and we will evidence progress next year. We made progress in preparing for participation outlined in the following sections:

Human rights

We seek to safeguard fundamental human rights for our employees, contractors and anyone that is affected by our business. We ensure that our suppliers apply high standards to protect human rights.

Modern Slavery Statement

Labour

We have policies and standards in place to safeguard our employees and contractors. We respect our employees’ rights in areas such as freedom of association and collective bargaining and we do not tolerate forced, compulsory or child labour. We are committed to providing a safe and healthy workplace for all our people and we strive to prevent discrimination and promote diversity in our workforce.

People

Environment

As a generator and supplier of electricity, we take our responsibility to protect the environment very seriously. We have transformed our generation business and are seeking to further reduce our environmental impact. We focus on reducing our emissions to air, discharges to water, disposal of waste, and on protecting biodiversity and using natural resources responsibly. We have invested heavily in lower-carbon technology as we continue to transition away from coal to renewable and lower-carbon fuels.

Customers

Low Carbon

Environment

Anti-corruption

We do not tolerate any forms of bribery, corruption or improper business conduct. Our “Doing the Right Thing” framework sets out the ethical principles our people must uphold, which is supported by the Group corporate crime policy. Our strict ethical business principles apply to all employees and contractors and we expect the same high standards from anyone we do business with.

Ethics and Integrity

Drax Biomass invests in greenhouse gas efficiencies

Sustainable bioenergy
close-up of truck raising and lowering

We have increased the capacity at Drax Biomass Amite and Morehouse pellet plants to increase capacity and made them more greenhouse gas (GHG) efficient. Central to the projects was the addition of storage silos and handling equipment to allow increased use of dry shavings and other mill residuals. The developments included the addition of an extra truck dump at each facility to allow delivery of increased volumes of these feedstocks.

Drax biomass pellet trucks

Use of mill residuals and dry shavings reduces the energy required to make a pellet, as such material does not need to be de-barked, chipped and re-sized in the same way as roundwood. Some of the material has a low moisture content and is therefore able to enter the process after the dryer, which effectively increases the capacity of each plant. This drives down the average GHG emission per tonne of pellets produced. A key measure of this is the KWh of electricity per tonne of pellets, and we saw this reduce by about 10% in the final months of the year compared with the start of the year, with further savings anticipated.

LaSalle BioEnergy in Louisiana

At LaSalle, a significant amount of our investment is going into allowing pellets to be transported to the port by rail, rather than truck. For the 250 km trip to Baton Rouge, a significant carbon saving compared to trucks will be achieved when LaSalle reaches its capacity of 450,000 tonnes per year. Moving pellets by rail should start in the next year.

Bitcoin’s electricity consumption problem

2 March 2018

Electrification

Bitcoin is having a breakout year. Its price fluctuations are making headlines all over the world and major investment banks are finally beginning to take it seriously. In short, bitcoin is no longer a fringe currency – it’s becoming a major player.

But for all the advantages it and other decentralised currencies offer, such as low-transaction fees and no intermediaries, there’s a fundamental problem at their core: they use an extraordinary amount of electricity.

According to bitcoin analysis site Digiconomist, the bitcoin network now uses more than 52 terawatt hours (TWh) every year – more than the whole of Portugal, Ireland or Peru. If this rate of growth continues, it’s forecast that by July 2019 it is expected to use more electricity than the US.

So, while bitcoin may be heralded as a saviour from the monopolies of big banks, what does its incredible appetite for electricity spell for the world’s power networks?

Why does bitcoin use so much electricity?

Bitcoin might be an entirely digital currency, but it still needs to be ‘created’, and this requires a process called bitcoin mining.

Bitcoin is a decentralised network, meaning transactions are carried out directly between parties without any central authority. Instead, bitcoin securely records all its transactions through a network made up of thousands of users’ computers.

Bitcoin mining is essentially the process of recording and adding these transactions to the public network or ledger – known as the blockchain. Every 10 minutes, each pending bitcoin transaction is converted into a complex mathematical problem that needs to be solved.

This is where the ‘mining’ computers come in, which use high-powered processing hardware to tackle the mathematical equations and ‘solve’ each transaction. The first miner to successfully crack one of these problems adds that bitcoin transaction to the ledger and is rewarded with an amount of newly ‘mined’ bitcoins – currently set at 12.5 bitcoins (BTC), worth roughly $140,000.

This process isn’t a quick one and relies on large numbers of high-powered computers to solve the problems. One of the largest bitcoin mining rigs in the world – in Ordos, Inner Mongolia –  is made up of eight buildings crammed with 25,000 machines, all cranking through calculations 24 hours a day.

Unsurprisingly, this huge amount of processing power uses a lot of electricity. It also requires a huge amount of space and generates a lot of heat, all of which have sent bitcoin miners around the world in search of cheap electricity, plentiful space and cold weather.

The search for cheap tech power

Iceland and Sweden have become popular destinations for bitcoin mining thanks to its climate (which keeps computer equipment from overheating) and plentiful electricity. In fact, in Iceland, mining is set to reach 840 gigawatt hours (GWh) this year – more than the 700 GWh used by the country’s households.

Iceland’s high level of geothermal and hydroelectric power means these mining operations have a low environmental impact. However, the same can’t be said of the largest bitcoin miner in the world: China.

While it has an abundance of hydropower and an increasing renewable capacity, a large amount of China’s electricity still comes from coal – 72% of its total generation came from the fossil fuel in 2015. This raises concerns around the environmental impact of bitcoin’s increasing electricity needs.

Digiconomist estimates the emissions of just one large-scale, coal-powered bitcoin mining operation (e.g. the operation in Ordos) could fall between 24-40 tonnes of carbon dioxide (CO2) per hour – roughly the same as flying a full Boeing 747-400 for the same period.

However not everyone is convinced the network is as energy intensive as reports suggest, and part of the challenge is that – despite knowing how many bitcoins are in existence – there’s no precise way of knowing how much mining is going on.

What is known, however, is that even as cryptocurrency prices fluctuate, mining is increasing. In short, bitcoin’s incredible appetite for electricity isn’t going anywhere soon. But could it get cleaner?

Moving towards cleaner mining

Some companies are tackling the problem of making bitcoin more sustainable by bringing it off grid and linking it directly to cleaner sources of power, much like how tech companies are striking deals with local renewable suppliers when locating data centres.

Hydrominer, for example, is placing mining hardware directly into hydropower stations, while HARVEST aims to use dedicated wind turbines to power mining, which takes pressure off national grids and their electricity sources.

However, a more fundamental change could be possible: making the protocol used to create bitcoins less energy-intensive.

Ethereum, arguably the main rival cryptocurrency to bitcoin, this year switched from proof-of-work-based mining to proof-of-stake. This means coin creation is not depended on high-powered computers cranking through calculations, but instead through owners validating their stake in the cryptocurrency and ‘voting’ on block creation.

Another alternative is Chia Network, which harnesses unused hard drive storage space for blockchain verification Chia ‘farmers’ for offering storage space for the network.

Both have significant ground to cover to catch the market leader, however, so the more pressing question remains: What’s next for bitcoin? And what will happen as the number of available bitcoins decreases?

The future of bitcoin

Like gold there are a limited number of bitcoins that can ever be mined – 21 million to be precise. This means the reward for bitcoin mining halves roughly every four years as they become more abundant. The next drop is scheduled for 2020 when the reward will slide to 6.25 BTC.

But this doesn’t mean they’re getting easier to mine. In fact, it is growing increasingly difficult, and this means more computer power and a need for even more electricity, which in turn means higher overheads.

A report from JP Morgan estimates the price of mining a single bitcoin has grown tenfold in the last year to $3,920,  a change that could send miners in search of cheaper utilities. More than this, the added stress on grids could lead to a growth in dirtier (and cheaper) fossil fuels which can generate and power mining operations around the clock.

This could mean that as mining becomes more difficult and rewards drop, it will be controlled by fewer, larger-scale operators which can absorb the spiraling costs. Either way, it’s expected they will be forced to reduce their electricity consumption (or at least the cost of it) to remain economical as the rewards they earn cover less of their expenses.

Ultimately, however, if cryptocurrency is set to play a positive role in our future it must become less electricity intensive and work with evolving energy systems to be as sustainable and progressive for the environment as it could be for the global economy.

Drax Group plc Chief Executive comments on full year results

Will Gardiner, Chief Executive Officer, Drax Group

27 February 2018

Investors
Will Gardiner, CEO, Drax Group

We continued to transform the business in 2017, delivering a strong EBITDA performance, in line with expectations. This was delivered by all parts of the business making positive contributions for the first time.

We also made good progress delivering our strategy, which is clear and unchanged. We are increasing biomass self-supply, developing projects to diversify our generation mix and growing our B2B energy supply business.

The UK is undergoing an energy revolution, starting with a significant reduction in carbon emissions, and to support that we are helping to change the way energy is generated, supplied and used.

View full report

View investor relations presentation

Drax Group plc: Full year results for the twelve months ended 31 December 2017

Investors
RNS Number : 9871F
Drax Group PLC
Twelve months ended 31 December20172016
Key financial performance measures
EBITDA (£ million)(1)229140
Underlying profit after tax (£ million)(2)321
Underlying earnings per share (pence)(2)0.75.0
Total dividends (pence per share)12.32.5
Net cash from operating activities (£ million)315191
Net debt (£ million)(3)36793
Statutory accounting measures
(Loss) / profit before tax (£ million)(183)197
Reported basic (loss) / earnings per share (pence)(37.2)47.7

All areas of the business contributing to positive EBITDA for the first time

  • EBITDA up 64% to £229 million – improving earnings quality from biomass generation and Opus Energy
    • Pellet Production – EBITDA up £12 million to £6 million – 35% growth in production
    • Power Generation – EBITDA up £64 million to £238 million – contribution from biomass generation
    • B2B Energy Supply – EBITDA up £33 million to £29 million –acquisition of Opus Energy
  • Strong cash flow generation and balance sheet – 1.6x net debt to EBITDA
  • Final dividend of £30 million, representing 60% of the recommended full year – £50 million
  • £50 million share buy back programme consistent with capital allocation policy
  • Statutory loss before tax principally driven by unrealised losses related to foreign currency hedging of £156 million

Delivering strategy and remain on course to hit >£425 million EBITDA target by 2025

  • Accelerated energy supply growth with acquisition and on-boarding of Opus Energy
  • Increased biomass self-supply through acquisition and commissioning of third biomass pellet plant, LaSalle Bioenergy
  • Government support received for fourth biomass unit conversion at Drax Power Station
  • Development of options for future generation: coal-to-gas repowering option, two OCGTs (4) to enter next capacity market auction in December 2018

Focused on operational excellence and investment in strategy

  • Continued focus on safety, operational excellence and project development
  • Targeted investment in long-term growth opportunities
  • Continued growth in EBITDA and cash generation
  • Sustainable and growing dividend, with opportunities to return capital in line with policy

Will Gardiner, Chief Executive of Drax Group plc, said:

“We continued to transform the business in 2017, delivering a strong EBITDA performance, in line with expectations. This was delivered by all parts of the business making positive contributions for the first time.

“We also made good progress delivering our strategy, which is clear and unchanged. We are increasing biomass self-supply, developing projects to diversify our generation mix and growing our B2B energy supply business.

“The UK is undergoing an energy revolution, starting with a significant reduction in carbon emissions, and to support that we are helping to change the way energy is generated, supplied and used.”

Notes for analysts and editors

2017 Group Financial Review

  • Underlying earnings per share decreased to 0.7 pence
    • Accelerated depreciation of coal-specific assets, amortisation of intangible assets associated with the acquisition of Opus Energy and an increase in net finance charges.
  • Reported basic earnings per share – a loss of 37 pence, which includes unrealised losses on derivative contracts of £156 million (principally related to the foreign currency hedging programme) in addition to one-off items – transaction costs relating to the acquisition of Opus Energy (£8 million) and refinancing (£24 million)
  • Tax – one-off non-cash charge of £16 million – a reduction in US federal tax rates from 35% to 21% resulting in a revaluation of deferred tax balances, offset by £13 million cash tax credit from UK Patent Box tax regime, which rewards Drax patented innovation in biomass generation
  • Investment in line with guidance
    • Acquisition of Opus Energy (£367 million)
    • Acquisition and commissioning of LaSalle Bioenergy (£48 million)
    • Maintenance and improvement (£133 million) including pellet plant optimisation, strategic spares, Haven Power information systems, research and innovation and Opus Energy office consolidation
    • Continue to expect ongoing maintenance capital investment of £50-60 million per year
  • Net debt of £367 million (31 Dec 2016: £93 million), including cash on hand of £222 million

2017 Operational Review

Pellet Production – Focus on good quality pellets at lowest cost

  • 35% increase in pellet production to 0.8M tonnes (2016 0.6M tonnes)
  • Low-cost expansion of Amite and Morehouse plants complete
  • Improving operational performance whilst providing supply chain flexibility
  • LaSalle Bioenergy commissioning ahead of plan from November 2017, increasing output through 2018
  • Biomass self-supply increased

Power Generation – Focus on optimisation of existing assets and development of projects

  • Electricity output (net sales) 20.0TWh (2016: 19.6TWh)
  • 65% of generation from renewables (2016: 65%)
  • £88 million from system support and flexibility
  • £90 million capacity market payments secured for 2017-2022

B2B Energy Supply – Profitable business with growth in sales and customer meters

  • 12% increase in customer meter points to more than 375,000
  • 46% of energy sales from renewables
  • Opus Energy EBITDA in line with plan; Haven Power exceeded EBITDA breakeven target
  • Continued investment in next generation IT systems

Notes:

(1)  EBITDA is defined as earnings before interest, tax, depreciation, amortisation and material one-off items that do not reflect the underlying trading performance of the business.

(2)  2017 underlying earnings exclude unrealised losses on derivative contracts of £156 million and material one-off items that do not reflect the underlying performance of the business (2016: unrealised gains of £177 million).

(3)  Borrowings less cash and cash equivalents.

(4)  Open Cycle Gas Turbine.

Contacts

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 1757 612 491

Media:

Drax External Communications: Ali Lewis

+44 (0) 1757 612 165

 

View full report

View investor relations presentation

How Great Britain’s breakthrough year for renewables could have powered the past

21 February 2018

Power generation

After a year of smashing renewable records, Great Britain’s electricity system is less dependent on fossil fuels than ever before. Over the course of 2017, low-carbon energy sources, including nuclear as well as renewables, accounted for half of all electricity production.

The finding comes from Electric Insights, a quarterly research paper on Britain’s power system, commissioned by Drax and written by researchers from Imperial College London. The latest report highlights how Great Britain’s electricity system is rapidly moving away from fossil fuels, with coal and gas dropping from 80% of the electricity mix in 2010 to 50% in 2017.

It’s an impressive change for eight years, but it’s even more dramatic when compared to 60 years ago.

Powering the past with renewables

In 2017 renewable output grew 27% over 2016 and produced 96 terawatt hours (TWh) of electricity –  enough to power the entire country in 1958.

Back then Great Britain was dependent on one fuel: coal. It was the source of 92% of the country’s power and its high-carbon intensity meant emissions from electricity generation sat at 93 million tonnes of carbon dioxide (CO2). Compare that to just three million tonnes of CO2 emissions from roughly the same amount of power generated in 2017, just by renewables.     

Today the electricity system is much more diverse than in 1958. In fact, with nuclear added to renewable generation, 2017’s total low-carbon capacity produced enough power to fulfil the electricity needs of 1964’s Beatlemania Britain.

But what’s enabled this growth in renewable generation? One answer, as Bob Dylan explained a year earlier, is blowin’ in the wind.

Read the full article here: Powering the past.

Stormy weather powering Great Britain

Wind power experienced a watershed year in 2017. Thanks to blusterier weather and a wave of new wind farm installations coming online, wind generation grew 45% between 2016 and 2017.

Windfarms, both onshore and offshore, produced 15% of the entire country’s electricity output in 2017, up from 10% in 2016. The 45 TWh it generated over the course of the year was almost double that of coal – and there’s potential for this to increase in 2018 as more capacity comes online.

The 1.6 gigawatts (GW) of new offshore wind turbines installed in Great Britain last year accounted for 53% of the net 3.15 GW installed across Europe. With large offshore farms at Dudgeon and Race Bank still being commissioned, the 3.2 GW of total new operating capacity registered in 2017 across offshore as well as onshore wind is on course to grow.

Co-author of the article, RenewableUK’s Head of External Affairs Luke Clark, said:

“These figures underline that renewables are central to our changing power system. Higher wind speeds and a jump in installed capacity drove a dramatic increase in the amount of clean power generated. Alongside breaking multiple records for peak output, wind energy continued to cut costs.”

As wind power is dependent on weather conditions, it is intermittent in its generation. But in 2017, more than one storm offered ideal conditions for wind turbines. During Q4 there were three named storms as well as the remnants of a hurricane all battering the British Isles, all of which helped push average wind speeds 5% higher than in 2016. While calculating wind power based on wind speed is complex, windier weather means more power – monthly average wind speed is proportional to monthly average power output from wind farms.

While the 2017 annual average wind speed of 10.1mph, was in line with the country’s long-term average, wind generation was not consistent across the year. In Q4 wind output was close to an average of 7 GW. By contrast, between May and August it was closer to 4 GW. Thankfully these calmer months saw longer hours of daylight, allowing solar power to compensate.

Read the full article here: Wind power grows 45%

Driving down carbon emissions

The knock-on effect of an increase in renewable generation is a drop in the carbon intensity of electricity production and in 2017 this reached a new low.

Across the year, carbon emissions, including those from imported sources, totalled 72 million tonnes, down 12% from 2016. This decrease is equal to 150 kg of CO2 saved per person, or taking 4.7 million cars off the roads. The least carbon intensive period of the quarter came just after midnight in the early hours of Monday 2 October, when it measured a record low of 56 grammes per kilowatt hour (g/kWh) thanks to low fossil fuel generation and high levels of renewables.

Over the whole year there were 139 hours when carbon intensity dipped below 100 g/kWh. This generally required 50% of the electricity mix to come from renewable sources and demand to be lower than 30 GW. For carbon intensity to dip under 100 g/kWh on a more permanent basis, greater renewable capacity will be required as demand rises.

Read the full article here: Carbon emissions down 12%

Interconnectors meeting future demand

Electricity demand in Great Britain has been on the decline since 2002, primarily due to more efficient buildings and appliances, and a decline in heavy manufacturing. However, this is expected to change over the coming years as more electric vehicles are introduced and the heating system is electrified to help meet 2050 carbon emissions targets.

While installing greater renewable capacity will be crucial in meeting this demand with low-carbon power, interconnectors will also play a significant role, particularly from France, which boasts a large nuclear (and low-carbon) capacity.

However, electricity sales through interconnectors are often based on day-ahead prices rather than the live market, which can lead to trades that aren’t reflective of demand on each sides of the channel.

In Q4 there were eight half-hours when demand was very high (more than 50 GW), yet power was being exported. This occurred despite day-ahead prices suggesting traders would lose money due to lower demand in France and the cost of using the interconnector. It highlights the need for improvements in inter-network trading as Great Britain increases its intermittent renewable generation and looks to a greater reliance on importing and exporting power.

Read the full article here: Moving electricity across the channel

Great Britain’s electricity system continues to break its renewable records each year and heading into 2018 this is likely to continue. Wind and solar power will continue to grow as more installations come online and a fourth coal unit at Drax will be upgraded to sustainable biomass, which could lead to another breakthrough year. Regardless, 2017 will be a tough one to beat.

Explore the data in detail by visiting ElectricInsights.co.uk

Commissioned by Drax, Electric Insights is produced independently by a team of academics from Imperial College London, led by Dr Iain Staffell and facilitated by the College’s consultancy company – Imperial Consultants.

Notice of Preliminary Results announcement, presentation and webcast arrangements

20 February 2018

Investors
RNS Number : 4133F
Drax Group PLC

Notice of Preliminary Results announcement

Drax Group plc (“Drax”) confirms that it will be announcing its Preliminary Results for the twelve months ended 31 December 2017 on Tuesday 27 February 2018.

Information regarding the results presentation meeting and webcast is detailed below.

Results presentation meeting and webcast arrangements

Management will host a presentation for analysts and investors at 9:00am (UK Time), Tuesday 27 February 2018, at The Lincoln Centre, 18 Lincoln’s Inn Fields, London, WC2A 3ED.

Would anyone wishing to attend please confirm by either e-mailing [email protected] or calling Francesca Boothby at FTI Consulting on +44 (0) 203 727 1054.

The meeting can also be accessed remotely via a live webcast, as detailed below. After the meeting, the webcast will be made available and access details of this recording are also set out below.

A copy of the presentation will be made available from 7:00am (UK time) on Tuesday 27 February 2018 for download at: www.drax.com>>investors>>results-reports-agm>>investor-relations- presentations or use the link https://www.drax.com/investors/results-reports-agm/#investor- relations-presentations

Event Title:Drax Group plc: Preliminary Results
Event Date:Tuesday 27 February 2018
Event Time:9:00am (UK time)
Webcast Live Event Link:http://cache.merchantcantos.com/webcast/webcaster/4000/7464/16531/99668/Lobby/default.htm
Start Date:Tuesday 27 February 2018
Delete Date:Monday 11 February 2019
Archive Link:http://cache.merchantcantos.com/webcast/webcaster/4000/7464/16531/99668/Lobby/default.htm

For further information please contact Francesca Boothby at FTI Consulting on +44 (0) 203 727 1054.

Website: www.drax.com