Archives: Press Release

Drax completes acquisition of Pinnacle Renewable Energy Inc.

13 April 2021

Press releases

The acquisition positions Drax as the world’s leading sustainable biomass generation and supply business. It received overwhelming support from both sets of shareholders with 95.97% of Pinnacle’s and 99.99% of Drax’s shareholders voting in favour.

It transforms Drax into a truly international business, trading bioenergy from the North America continent to Europe and Asia, and positions the enlarged Group to take advantage of global growth opportunities, with the market for biomass pellets for renewable generation in Europe and Asia expected to grow significantly.

This large and geographically diversified asset base enhances Drax’s sourcing flexibility and security of supply.

The acquisition will increase Drax’s annual operational capacity to 4.9 million tonnes of sustainable biomass pellets from 2022, at 17 plants in locations across Western Canada and the US South – up from 1.6Mt now. Of this increased capacity, 2.9 million will be available for Drax’s self-supply requirements from 2022. It will also give the Group access to four deep water port facilities and three major wood fibre baskets.

By advancing the strategy to increase self-supply and reduce biomass production costs, the acquisition paves the way for the Company’s plans to deliver Bioenergy with Carbon Capture and Storage (BECCS), permanently removing millions of tonnes of carbon dioxide from the atmosphere each year.

By becoming a world leader in BECCS, Drax can deliver on its purpose of enabling a zero carbon, lower cost energy future, and achieve its ambition to become a carbon negative company by 2030.  Drax will seek to export its BECCS expertise around the world to support global efforts to address the climate emergency.

Will Gardiner, Chief Executive Officer of Drax, said:

“This is an exciting and important acquisition which positions Drax as the world’s leading sustainable biomass generation and supply business. I am delighted to welcome our new Pinnacle colleagues to the Drax family and look forward to what we can achieve together.

Drax Group CEO Will Gardiner

Drax Group CEO Will Gardiner in the control room at Drax Power Station [Click to view/download]

“As well as making Drax an international supplier of sustainable biomass, this deal advances our strategy to increase self-supply, reduce our own biomass production cost and create a long-term future for sustainable bioenergy. We expect to benefit greatly from Pinnacle’s operational and commercial expertise.

“Through this deal we are also advancing our plans to use BECCS to permanently remove millions of tonnes of carbon dioxide from the atmosphere each year and become a carbon negative company by 2030. Negative emissions from BECCS are vital if we are to address the global climate emergency. BECCS will also provide a significant share of the renewable electricity needed in a net zero economy, support green jobs and drive growth in a post-COVID recovery.”

ENDS

Media contacts:

Ali Lewis
Drax Group Head of Media and PR
E: [email protected]
T: +44 (0) 7712 670 888

Editor’s Notes:

Read stock market announcement: Completion of the acquisition of Pinnacle Renewable Energy Inc.

Read blog by Will Gardiner: The world’s leading sustainable biomass generation and supply business

Drax now has ownership interests in a total of ten operational pellet plants, and one in development, in Western Canada and the US South:

PlantLocationStatusCommissioningNameplate Capacity (Mt)Pinnacle Ownership (%)
Williams LakeBC, CanadaOperational20040.2100%
HoustonBC, CanadaOperational20060.230%
ArmstrongBC, CanadaOperational20070.1100%
MeadowbankBC, CanadaOperational20080.2100%
Burns LakeBC, CanadaOperational20110.4100%
LavingtonBC, CanadaOperational20150.375%
SmithersBC, CanadaOperational20180.170%
EntwistleAlberta, CanadaOperational20180.4100%
AlicevilleAlabama, USAOperational20180.370%
High LevelAlberta, CanadaOperational20200.250%
DemopolisAlabama, USADevelopmentEst. 20210.470%
Total2.982%

These are in addition to the six pellet plants in the US South Drax already owns:

  • LaSalle and Morehouse pellet plants in Louisiana,
  • Amite in Mississippi
  • Three satellite pellet plants in Arkansas which are in development.

As a result of the acquisition Drax now has access to four deep water ports, providing good access to European and Asian markets. The ports are:

  • Vancouver, BC, Canada
  • Prince Rupert, BC, Canada
  • Mobile, Alabama, USA
  • Baton Rouge, Louisiana, USA

Drax maintains a rigorous and robust approach to biomass sustainability, as well as the safe operation of its pellet plants.

Pinnacle’s wood pellets are principally sourced from sawdust and other materials left over from existing sawmilling activity, which would otherwise be left to decompose or be burned. 

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 3,400 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties.

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Pellet production and supply:

Drax owns and has interests in 17 pellet mills in the US South and Western Canada which have the capacity to manufacture 4.9 million tonnes of compressed wood pellets (biomass) a year. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet mills supply around 20% of the biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses.

Customers:  

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across Britain.

For more information visit www.drax.com/uk

Achieving UK climate goals is £4.5bn cheaper with BECCS at Drax

12 April 2021

Press releases
  • Deploying bioenergy with carbon capture and storage (BECCS) at Drax will save the UK more than £4.5bn over the coming decade rising to £5bn by 2050 in meeting its climate goals, .
  • BECCS is an essential negative emissions technology that can help the UK to meet its legally binding fifth carbon budget between 2028 and 2032, an important milestone in the journey towards achieving net zero by 2050.
  • Drax plans to capture millions of tonnes of CO2 a year by developing two BECCS units by 2030, delivering 40% of the negative emissions from BECCS the UK Climate Change Committee indicates will be needed in 2050 for the UK to reach net zero.

Developing bioenergy with carbon capture and storage (BECCS) at Drax could save the UK energy system and consumers billions of pounds over the next decade, according to a new report.

Value of BECCS to the UK decarbonisation pathway

Click to view exec summary

The independent analysis by leading energy consultancy Baringa, commissioned by Drax Group, evaluates the impact of deploying BECCS at scale as part of achieving the country’s climate change targets.

Drax Group CEO Will Gardiner

Drax Group CEO Will Gardiner in the control room at Drax Power Station [Click to view/download]

It finds that without BECCS at Drax Power Station the energy system would incur additional costs of around £4.5bn to achieve the UK Government’s fifth carbon budget in 2028 to 2032 – making decarbonisation more difficult and significantly more expensive.

Will Gardiner, Drax Group CEO, said:

“Innovative green technologies like BECCS can save the UK billions of pounds in achieving our legally binding climate targets, whilst removing millions of tonnes of CO2 from the atmosphere and supporting tens of thousands of jobs.

“Drax is ready to invest in this essential technology which will help the UK decarbonise faster and kickstart a whole new industry here. By delivering BECCS, the UK can show the world what can be achieved for the environment and the economy when governments, businesses and communities work together.”

Not developing BECCS at Drax, or more widely across the country, will also have significant costs for the UK reaching its net zero by 2050 target. The report estimates the target will cost £15bn more to achieve without deploying this essential negative emissions technology.

Baringa report for Drax

Click to view report

With the right investment framework from government, work to build Drax’s first two BECCS units could get underway as soon as 2024, ready to start capturing and storing millions of tonnes of CO2 a year in 2027.

Drax has already transformed its power station near Selby in North Yorkshire to become the largest decarbonisation project in Europe having converted it to use sustainable biomass instead of coal. It plans to go further by using BECCS and last month kickstarted the planning process.

ENDS

Media contacts:

Aidan Kerr
Media Manager (Generation)
E: [email protected]
T: 07849090368

Ben Wicks
Media Manager (Customers)
E: [email protected]
T: 07761 525 662

Editor’s Notes

The Baringa Value of Biomass with Carbon Capture and Storage (BECCS) in Power, report found that:

  • Without BECCS at Drax providing negative emissions in the late 2020s, it will cost the UK £4.5bn more to achieve the fifth carbon budget and require much more challenging action by consumers.*
  • The fifth carbon budget is a legally binding milestone which caps the amount of greenhouse gases which can be emitted over a five-year period – between 2028 and 2032, with the overall aim of reducing the UK’s emissions to net zero by 2050.
  • Not deploying BECCS at Drax Power Station would mean the UK could not deliver this important negative emissions technology until at least the 2030s.
  • Using BECCS technology on two of Drax’s biomass units could capture eight million tonnes of CO2 each year (MTpa). This means Drax could deliver 40% of the Climate Change Committee’s 2050 net zero BECCS power target by 2030.
  • In all modelled scenarios, the report found, “Our economic analysis suggests the Drax BECCS-power project is a ‘no regrets’ option, across a wide range of scenario conditions, to enable the UK to meet net-zero in a cost optimal manner.”
*August 2021 update following further research from Baringa: Without BECCS at Drax providing negative emissions in the late 2020s, it will cost the UK £13bn more to achieve the fifth carbon budget and require much more challenging action by consumers.

A summary of the report’s findings can be found by visiting the website. And a copy of the full report is available here.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Customers:

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across Britain.

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass 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/uk 

Siemens helps Cruachan Hydroelectric Power Station remove F-gas switchgear and replace with clean air technology

7 April 2021

Press releases
  • Siemens has installed four maintenance and F-Gas free generator circuit breakers at Drax Group’s subterranean pumped hydro storage power station in the Scottish Highlands

Siemens has completed a major project with Drax Group to upgrade the infrastructure in the iconic Cruachan pumped hydro storage Power Station with greener technology. Replacing equipment that was over 30 years old, the project included the UK’s first installation of four modern Siemens generator circuit breakers that do not depend on the sulphur hexafluoride (SF6) gas commonly used in switchgear.

Cruachan underground pumped hydro storage plant, also known as the Hollow Mountain, supplies up to 440 megawatts of flexible, on-demand electricity to the National Grid from four reversible turbines and has played a critical role in stabilising the UK’s electricity system throughout the Covid-19 pandemic.

SF6 gas has traditionally been used in circuit breakers due to its good insulation capabilities but is classed as a greenhouse gas. Siemens’ innovative non-SF6 generator breakers use vacuum technology instead, making them safer and more environmentally friendly. There is no risk of gas leakages and no need for costly maintenance carried out by specialist engineers. Built from materials that are completely recyclable and hermetically sealed, the vacuum circuit breakers also have fewer moving parts, reducing wear and significantly boosting reliability. Each vacuum interrupter has a mean time to failure of 77,000 years and can run through 10,000 operating cycles before a service is required – for Cruachan, that equates to ten years of maintenance-free operation.

Cruachan Power Station provides fast, reliable power to the National Grid, as well as the flexibility to absorb excess power – meaning it can start generating or pumping electricity within less than a minute, as well as providing system support services to maintain secure supplies of electricity and support more renewables like wind and solar to come onto the grid. Using a generator circuit breaker simplifies Cruachan’s operational procedures, synchronizing the load and avoiding extensive damage inside the transformer.

“With Cruachan playing a vital role in supporting the growth of wind power in Scotland and enabling further decarbonisation of the grid, it is only right that the infrastructure inside the power station is also environmentally friendly,” explains Ian Kinnaird, Drax’s Head of Hydro. “Working closely with Siemens, we retrofitted a first-of-its-kind solution that uses innovative vacuum circuit breaker switching instead of SF6 gas. Not only has this removed any potential environmental impact and health and safety concerns caused by the previous, outdated switchgear – the new generator breakers are practically maintenance free, reducing costs. It’s a really neat solution.”

Ross Fraser, technical manager, Power & Utilities, Siemens adds:

“Cruachan Power Station is contracted to provide reliable, clean electricity to the grid, so it is paramount that the technology installed is dependable, safe and sustainable. Siemens vacuum circuit breakers are built on more than 40 years of engineering experience and have proven their reliability in installations all over the world, so we are delighted that Drax chose this solution for the UK’s first implementation inside a hydro power station. The project was certainly unique as we were working 1km underground at the heart of Ben Cruachan mountain, but by working very closely with the Drax team, we achieved a quick turnaround and had the first unit fitted in under 12 months during planned maintenance downtime.”

The generator circuit breakers were installed after being transported through a narrow, one-kilometre long tunnel that leads deep into Ben Cruachan mountain. The work had to take place over the course of two years during planned maintenance downtime to reduce disruption to this critical national infrastructure.

Notes to editors:

Media contacts:

Aidan Kerr
Drax Group Media Manager
E: [email protected]
T: 07849 090 368

About Siemens Smart Infrastructure (SI)

Siemens Smart Infrastructure (SI) is shaping the market for intelligent, adaptive infrastructure for today and the future. It addresses the pressing challenges of urbanization and climate change by connecting energy systems, buildings and industries. SI provides customers with a comprehensive end-to-end portfolio from a single source – with products, systems, solutions and services from the point of power generation all the way to consumption. With an increasingly digitalized ecosystem, it helps customers thrive and communities progress while contributing toward protecting the planet. SI creates environments that care. Siemens Smart Infrastructure has its global headquarters in Zug, Switzerland. As of September 30, 2020, the business had around 69,600 employees worldwide.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Drax cooling tower shines bright on National Day of Reflection for COVID anniversary

23 March 2021

Press releases

Employees from across Drax’s UK sites will take part in a minute’s silence, to remember the 143,000 people that have lost their lives across the country since the first lockdown began on March 23 last year.

Bruce Heppenstall, Drax Plant Director said:

“This day of reflection will allow everyone to remember those who have died since the pandemic started – bringing people together to pause, reflect and support each other.

“We have been in awe of the NHS and other carers and key workers who have done so much to help those who have suffered as a result of this disease and to keep the country going.

“Our own key workers at Drax have worked tirelessly, round the clock, to continue generating the renewable electricity we all rely on. Lighting up one of our cooling towers will, I hope, be a beacon of hope to the Yorkshire region.”

This isn’t the first time Drax has used its 114m tall cooling towers to show its support during the pandemic. Last year one of its cooling towers shone blue each Thursday as part of the national ‘Clap for Carers’ initiative which recognised the work of the NHS and other carers during the first wave of the pandemic.

There will be a minute’s silence at mid-day on Tuesday March 23 as part of the national day of reflection. Drax’s cooling tower will be lit up from 8pm to midnight that evening.

Photo gallery

Opus Energy generated £678 million and supported 6,000 jobs in the East Midlands

22 March 2021

Press releases
  • Northampton based renewable energy supplier Opus Energy has contributed almost £678 million towards the East Midlands’ economy and supported 6,000 jobs.
  • Opus Energy supplies renewable energy to businesses across the UK, helping them to be more sustainable.

Leading energy supplier Opus Energy contributed £678 million towards the East Midlands’ economy and supported 6,000 jobs, according to a new report.

The independent analysis measured the economic impact of Drax Group’s UK operations, the owner and operator of Drax Power Station – the country’s biggest renewable power generator, which produces enough renewable electricity for four million homes.

Will Gardiner, Drax Group CEO, said:

“Drax’s operations and sophisticated supply chains are helping level up the UK by spreading jobs, skills and opportunities across the whole of the country.

“We plan to go further by deploying bioenergy with carbon capture and storage to permanently remove CO2 from the atmosphere whilst generating the renewable electricity businesses need in order to decarbonise the economy and help Britain to build back better after Covid.”

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

James Bedford, Economist at Oxford Economics, said:

“Drax Group makes an important economic contribution to the UK. Its activities generated £2.2 billion in GDP in 2019, and sustained thousands of jobs across the nation.

“The positive impact from Drax’s operations aren’t just confined to the boundaries of its power stations or customer contact centres, it is spread across the country benefiting communities throughout the UK.”

ENDS

Media contacts:

Ali Lewis
Head of Media and PR
E: [email protected]
T: 07712 670888

Aidan Kerr
Media Manager (Generation)
E: [email protected]
T: 07849090368

Editors Notes:

  • You can access a copy of the report by going to: https://www.draximpact.co.uk/
  • 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.
  • The report’s findings are taken from analysis of the latest available data, from 2019 – just after Drax Group’s acquisition of a portfolio of generation assets, including hydro and gas power stations.

Key findings

  • Drax Group contributed £2.2 billion towards UK GDP in 2019 and supported over 19,000 jobs across the country.
  • 4,200 jobs supported in Yorkshire and the Humber.
  • 1,200 jobs supported in Scotland and £211 million generated in its economy, home to Drax’s hydro operations including the iconic ‘Hollow Mountain’ Cruachan Power Station.
  • £392 million generated and 2,900 jobs supported in the East of England, where one of Drax Group’s B2B power supply businesses Haven Power, is based.
  • 2,700 jobs supported and £289 million generated in the East Midlands, home to Opus Energy – Drax’s other B2B retail business, which supplies energy to SMEs.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900-strong employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of flexible, low carbon and renewable electricity generation assets across Britain. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Customers:

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across England, Scotland and Wales.

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass 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/uk

Haven Power generated £398 million and supported over 3,400 jobs in the East of England

Press releases
Trading desk at Haven Power, Ipswich
  • Ipswich based renewable energy supplier Haven Power, part of Drax Group, has contributed almost £400 million towards the East of England economy and supported more than 3,400 jobs.
  • Haven Power is a leading supplier of renewable energy to some of Britain’s biggest businesses including airports and car manufacturing plants.

Leading energy supplier Haven Power contributed £398 million towards the UK economy and supported 3,400 jobs across the country, according to a new report.

The independent analysis by Oxford Economics measured the economic impact of the UK operations of Drax Group, Haven Power’s parent company, which owns and operates Drax Power Station – the country’s biggest renewable power generator.

Haven Power, a leading supplier of renewable energy to business customers, is based in Ipswich. Drax Group’s operations contributed almost £400 million towards the East of England economy and supported 2,900 jobs in the region.

Will Gardiner, Drax Group CEO, said:

“Drax’s operations and sophisticated supply chains are helping level up the UK by spreading jobs, skills and opportunities across the whole of the country.

“We plan to go further by deploying bioenergy with carbon capture and storage to permanently remove CO2 from the atmosphere whilst generating the renewable electricity businesses need in order to decarbonise the economy and help Britain to build back better after Covid.”

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

James Bedford, Economist at Oxford Economics, said:

“Drax Group makes an important economic contribution to the UK. Its activities generated £2.2 billion in GDP in 2019, and sustained thousands of jobs across the nation.

“The positive impact from Drax’s operations aren’t just confined to the boundaries of its power stations or customer contact centres, it is spread across the country benefiting communities throughout the UK.”

Media contacts:

Aidan Kerr
Drax Group Media Manager
E: [email protected]
T: 07849090368

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

Editor’s Notes

  • You can access a copy of the report by going to: https://www.draximpact.co.uk/
  • 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.
  • The report’s findings are taken from analysis of the latest available data, from 2019 – just after Drax Group’s acquisition of a portfolio of generation assets, including hydro and gas power stations.

Key findings

  • Drax Group contributed £2.2 billion towards UK GDP in 2019 and supported over 19,000 jobs across the country.
  • 4,200 jobs supported in Yorkshire and the Humber.
  • 1,200 jobs supported in Scotland and £211 million generated in its economy, home to Drax’s hydro operations including the iconic ‘Hollow Mountain’ Cruachan Power Station.
  • £392 million generated and 2,900 jobs supported in the East of England, where one of Drax Group’s B2B power supply businesses Haven Power, is based.
  • 2,700 jobs supported and £289 million generated in the East Midlands, home to Opus Energy – Drax’s other B2B retail business, which supplies energy to SMEs.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900-strong employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of flexible, low carbon and renewable electricity generation assets across Britain. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Customers:  

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across England, Scotland and Wales.

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass 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/uk

Drax generated £728 million for the northern economy and supported over 6,600 jobs

Press releases

  • Having converted the power station in North Yorkshire from coal to sustainable biomass Drax Group has delivered for the environment and the economy, preserving jobs and supporting many thousands more throughout its supply chains in the North.

  • The power station is already the biggest decarbonisation project in Europe and Drax intends to go further by deploying bioenergy with carbon capture and storage (BECCS) technology to become a carbon negative company by 2030.

  • Using BECCS at Drax will create and support tens of thousands of new jobs in the 2020s.

Renewable energy company Drax Group contributed £728 million towards the economy in the North of England and supported 6,600 jobs across the region, according to a new report.

The independent analysis by Oxford Economics measured the economic impact of Drax’s UK operations, which includes Drax Power Station, near Selby in North Yorkshire – the country’s biggest renewable power generator, which produces enough renewable electricity for four million homes.

Download – Drax Power Station

Thousands more jobs could be created in the years ahead as part of Drax’s plan to deploy bioenergy with carbon capture and storage (BECCS) technology. A report by Vivid Economics found that deploying cutting edge green technologies like BECCS and hydrogen could create and support almost 50,000 jobs in the Humber region this decade.

Will Gardiner, Drax Group CEO, said:

“Drax’s renewable power operations and sophisticated supply chains are helping level up the UK by supporting jobs, skills and opportunities.

“We aim to go further by deploying cutting edge green technologies like bioenergy with carbon capture and storage to help Britain build back better, delivering a post-Covid, green economic recovery by vital new technologies needed to address the climate crisis.”

Jobs supported by Drax’s activities covered a wide range of sectors including high-skilled manufacturing of industrial components, engineering and technical machinery, IT, professional business services and transporting goods such as sustainable biomass wood pellets.

James Bedford, Economist at Oxford Economics, said:

“Drax Group makes an important economic contribution to the UK. Its activities generated £2.2 billion in GDP in 2019, and sustained thousands of jobs across the nation.

“The positive impact from Drax’s operations aren’t just confined to the boundaries of its power stations or customer contact centres, it is spread across the country benefiting communities throughout the UK.”

The analysis showed the vast majority of the Group’s impact was felt outside London and the South East: Of the £2.2 billion GDP, £140 million was in London, meaning 94% of the Group’s economic impact was experienced outside of the capital.

ENDS

Media contacts:

Ali Lewis
Head of Media and PR
E: [email protected]
T: 07712 670888

Aidan Kerr
Media Manager (Generation)
E: [email protected]
T: 07849090368

Editor’s Notes

  • You can access a copy of the report by going to: https://www.draximpact.co.uk/
  • 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.
  • The report’s findings are taken from analysis of the latest available data, from 2019 – just after Drax Group’s acquisition of a portfolio of generation assets, including hydro and gas power stations.

Key findings from the Oxford Economics report:

  • Drax Group contributed £2.2 billion towards UK GDP in 2019 and supported over 19,000 jobs across the country.
  • 4,200 jobs supported in Yorkshire and the Humber.
  • 1,200 jobs supported in Scotland and £211 million generated towards its economy, home to Drax’s hydro operations including the iconic ‘Hollow Mountain’ Cruachan hydro pumped storage power station.
  • £392 million generated and 2,900 jobs supported in the East of England, where one of Drax Group’s B2B power supply businesses, Haven Power, is based.
  • 2,700 jobs supported and £289 million generated in the East Midlands, home to Opus Energy – Drax’s other B2B customer business, which supplies energy to SMEs.
  • Drax commissioned Vivid Economics to examine the socio-economic benefits of developing bioenergy with carbon capture and storage BECCS alongside other cutting-edge green technologies in the Humber region. You can read the full report here.
  • Drax recently announced it was kickstarting the planning process to develop BECCS. Work could get underway at Drax as soon as 2024, creating tens of thousands of jobs. By 2027 Drax’s first BECCS unit could be operational, delivering the UK’s largest carbon capture project and permanently removing millions of tonnes of carbon dioxide from the atmosphere each year.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900-strong employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of flexible, low carbon and renewable electricity generation assets across Britain. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Customers:

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across England, Scotland and Wales.

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass 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/uk

 

 

Drax generated £211 million for Scotland’s economy and supported over 1,200 jobs in Scotland

Press releases
Tunnel at Cruachan Power Station

  • New report shows Drax generated more than £200m for the Scottish economy, helping local businesses and supporting skilled jobs in rural areas.

  • Drax owns and operates nine hydro power stations in Scotland, including the iconic ‘Hollow Mountain’ Cruachan pumped storage hydro power station in Argyll.

Renewable energy company Drax Group contributed £211 million towards the Scottish economy and supported 1,200 jobs across the country, according to a new report.

The independent analysis by Oxford Economics measured the economic impact of Drax’s UK operations, which includes the iconic underground ‘Hollow Mountain’ Cruachan pumped storage hydro power station in Argyll.

Download – Cruachan Dam

Cruachan acts like a giant battery with its reversible turbines able to both pump water to store excess energy and generate power when the country needs it most. This process enables the plant to stop excess renewable power from wind farms going to waste, and Drax is progressing plans to expand Cruachan to help the country decarbonise faster.

Will Gardiner, Drax Group CEO, said:

“Drax’s renewable power operations and sophisticated supply chains are helping level up the UK economy by supporting jobs, skills and opportunities – including in Scotland.

“We aim to go further by progressing plans to expand our pumped storage hydro capacity at Cruachan – this will help the country to decarbonise faster and to build back better, delivering a post-Covid, green economic recovery using vital technologies needed to address the climate crisis.”

Jobs supported by Drax’s activities across the UK covered a wide range of sectors including high-skilled manufacturing of industrial components, engineering and technical machinery, IT, professional business services and transporting goods.

James Bedford, Economist at Oxford Economics, said:

“Drax Group makes an important economic contribution to the UK. Its activities generated £2.2 billion in GDP in 2019, and sustained thousands of jobs across the nation.

“The positive impact from Drax’s operations aren’t just confined to the boundaries of its power stations or customer contact centres, it is spread across the country benefiting communities throughout the UK.”

ENDS

Media contacts:

Ali Lewis
Head of Media and PR
E: [email protected]
T: 07712 670888

Aidan Kerr
Media Manager (Generation)
E: [email protected]
T: 07849090368

Editor’s Notes

  • You can access a copy of the report by going to: https://www.draximpact.co.uk/
  • 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.
  • The report’s findings are taken from analysis of the latest available data, from 2019 – just after Drax Group’s acquisition of a portfolio of generation assets, including hydro and gas power stations.

Key findings from the Oxford Economics report:

  • Drax Group contributed £2.2 billion towards UK GDP in 2019 and supported over 19,000 jobs across the country.
  • 4,200 jobs supported in Yorkshire and the Humber.
  • 1,200 jobs supported in Scotland and £211 million generated towards its economy, home to Drax’s hydro operations including the iconic ‘Hollow Mountain’ Cruachan pumped storage hydro power station.
  • £392 million generated and 2,900 jobs supported in the East of England, where one of Drax Group’s B2B power supply businesses, Haven Power, is based.
  • 2,700 jobs supported and £289 million generated in the East Midlands, home to Opus Energy – Drax’s other B2B customer business, which supplies energy to SMEs.
  • Drax commissioned Vivid Economics to examine the socio-economic benefits of developing bioenergy with carbon capture and storage BECCS alongside other cutting-edge green technologies in the Humber region. You can read the full report here.
  • Drax recently announced it was kickstarting the planning process to develop BECCS. Work could get underway at Drax as soon as 2024, creating tens of thousands of jobs. By 2027 Drax’s first BECCS unit could be operational, delivering the UK’s largest carbon capture project and permanently removing millions of tonnes of carbon dioxide from the atmosphere each year.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology.

Its 2,900-strong employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of flexible, low carbon and renewable electricity generation assets across Britain. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

Customers:

Through its two B2B energy supply brands, Haven Power and Opus Energy, Drax supplies energy to 250,000 businesses across England, Scotland and Wales.

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass 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/uk