Archives: Press Release

Smart Green Shipping Alliance partners with Drax and Ultrabulk to cut shipping supply chain emissions

20 November 2018

Press releases

Drax, operator of the UK’s largest power station, is partnering with the Smart Green Shipping Alliance (SSGA), leading dry bulk cargo transporter Ultrabulk, and Humphreys Yacht Design, naval architects of Dame Ellen McArthur’s ‘Kingfisher’ yacht, to tackle the mounting issue of CO2 emissions from the shipping industry.

A £100,000 12-month feasibility study funded by InnovateUK, the Institution of Mechanical Engineers (IMechE) and private investors has begun, which will examine the potential of fitting an innovative sail technology called Fastrig onto Ultrabulk ships importing biomass into the UK, for cutting both carbon emissions and costs.

The shipping industry emits roughly 3% of global CO2 and other greenhouse gas emissions (CO2-equivalent), or approximately 1 billion tonnes of CO2 and other GHGs per year.  That’s over twice as much as the UK’s total emissions, from all sources.

Drax Power Station in North Yorkshire has transformed its business having converted two thirds of the power station to use biomass instead of coal – it is now Europe’s biggest decarbonisation project. Last year, it imported 6.8 million tonnes of the compressed wood pellets in 221 deliveries to the ports of Immingham, Hull, Tyne and Liverpool, to enable it to generate 14% of the UK’s renewable electricity.

Using biomass at Drax has delivered carbon savings of more than 80% compared to coal – this includes supply chain emissions, but shipping remains one of the most carbon intensive parts of the biomass supply chain. Drax’s desire to drive down emissions even further enabled Smart Green Shipping to partner with an ‘end user’ looking for the lowest carbon cargo provider.

Diane Gilpin, CEO and Founder of Smart Green Shipping Alliance said:

“This is a project that could really make a difference to the way the industry operates. Drax’s determination to cut carbon emissions creates real demand. Reducing emissions is good business, it saves costs and improves long-term operational certainty. This study aims to find the ‘sweet spot’ between reducing emissions and saving fuel costs.

“We’re engaging across shipping, working with port owners, shipbuilders, cargo owners’, and financiers to design pragmatic and effective new systems solutions. The prototypes we’re looking to develop are really exciting. A 21st century sailing-hybrid ship will look as much like the Cutty Sark as a Tesla does a Model T Ford.”

Gilpin is an expert on the UK government’s Clean Maritime Council, which will devise a strategy to reduce emissions from the shipping sector.

UK Shipping Minister Nusrat Ghani said at the Council’s inaugural meeting:

“The Clean Maritime Plan will bring new opportunities for Britain’s businesses to design, develop and sell green solutions to this global challenge.”

Drax Group CEO Will Gardiner said:

“Smart Green Shipping Alliance’s pioneering efforts to deliver cleaner, greener transportation could help achieve the clean growth required for the UK to meet its climate targets. If we’re serious about meeting those targets, decarbonising transportation is the next big challenge.

“The combination of green shipping with renewables makes an even greater contribution to decarbonisation globally. This is a key development in achieving Drax’s aim – to deliver a zero carbon, low cost future for all.”

The innovation leads on the project, Rob and Tom Humphreys of Humphreys Yacht Design, explained how their team’s background in ocean racing has helped them to make technical advances in an industry that has used the same technology for the past century.

Tom said, “Transferring knowledge and technologies from offshore yacht racing to improve the performance of commercial merchant ships mirrors the way Formula One drives design development in the automotive industry.

“We’ve worked on America’s Cup and Volvo Ocean Race campaigns, competing at the highest level. Applying this technology to the commercial shipping industry means that we are able to make very significant fuels saving advances”, said Rob

The first six months of the project will be a technical feasibility study, establishing the mechanical parameters for retrofitting the Fastrig solution onto ships. The next six months will focus on putting together a business case and calculating detailed costings for the project.  The aim is to retrofit a ship with the Fastrig technology – depending on the outcome of the feasibility study, the launch of the Commercial Demonstrator could be done as soon as 2021.

The technology could drive down not only carbon emissions but also cost. Diane Gilpin explained, “Fuel prices are vulnerable to oil market volatility, but once the technology is developed, wind is free at the point of use.  The first onshore wind turbines were single devices producing 45KW; now we’re seeing fleets of 10MW producing energy, without subsidy. We can expect to mirror that speed of transition in the shipping industry.”

The SGSA has been pioneering the uptake of renewables in the maritime industry since 2014, identifying wind power as the first choice of exploration. The long-term aim of the company is to develop commercially viable, zero-emission vessels. The eventual aim is to combine renewable energy from wind power with bio-fuels.

Per Lange, CEO of Ultrabulk said:

“We are very much looking forward to working with our partners at Drax and Smart Green Shipping Alliance. The feasibility study initiated is very much in line with the environmental focus of Ultrabulk and the shipping industry at large.

“We have made considerable improvements to NOx and SOx emissions; the latter being the focus as in 2019 the SOx emission has to be reduced by 85 per cent. As an industry we are under way to deliver on these limits, but we shall naturally not stop there.

“CO2 still needs to be reduced. As well as the Shipping Industry’s commitment through International Maritime Organisation targets, Ultrabulk is committed to achieving significant additional reductions. The Smart Green Shipping Alliance is an exciting step in that direction.”

Dr Jenifer Baxter, Head of Engineering, IMechE said:

“This is an exciting project that addresses one of the more difficult decarbonisation challenges and represents the ingenuity of engineering that the Institution of Mechanical Engineers seeks to support.

“Shipping has been a part of our global transportation system for hundreds of years moving through wind and man-power to coal and diesel power. This project presents a new phase taking us full circle forward again to wind power, leading the way with state-of-the-art power and engine technologies enabling shipping to remain relevant and commercially viable in an increasingly low-carbon world.”

ENDS

For more information contact:

SGSA: Diane Gilpin, 07768 312176, [email protected]

Drax: Jessica Gorton, 07712677177, [email protected]

HYD: Rob Humphreys, 01590 679344, [email protected]

Notes to Editors

The International Maritime Organisation, the London-based specialist UN agency responsible for the safety of shipping and its environmental impact, in April this year reached a landmark greenhouse gas agreement, which set two key goals: Greenhouse gas emissions from shipping to decline by at least 50% by 2050, compared to 2008 levels, and as an interim goal carbon intensity of shipping to decline by 40% by 2030. The International Chamber of Shipping has said the future of the sector lies beyond fossil fuels, and that the IMO agreement sends a strong signal for the development of low and zero carbon propulsion technologies in the shipping sector.

Smart Green Shipping Alliance

  • Established in 2014 with the purpose of commercialising renewable energy for the global shipping sector
  • SGSA accelerates commercially viable solutions through transferring technology and knowledge from offshore yacht racing, F1, renewable energy, aviation and defence to complement deep commercial maritime expertise. It includes the Institution of Mechanical Engineers (IMechE), Humphreys Yacht Design, Lloyds Register, Group Partners, University of Southampton, University College London, Tyndall Centre for Climate Change, Willis Towers Watson, Cammell Laird and Capital Law.
  • Founder/CEO sits on the newly created Clean Maritime Council
  • Advisory Board: Dr Jenifer Baxter, IMechE; Baroness Bryony Worthington, Environmental Defense Fund, and architect of UK climate policy; Professor Jingjing Xu, maritime commerce Plymouth University; Peter Hinchliffe CBE, former Secretary General, International Chamber of Shipping.

Humphreys Yacht Design

  • Rob & Tom Humphreys head up a team of highly talented and experienced naval architects and yacht designers in a studio that boasts one of the most diverse design portfolios.
  • Successful projects include multiple award winning Superyachts (such as the 37m MY Ermis² and the 38m Ketch Cyrano de Bergerac), America’s Cup, Vendee Globe, Global Challenge and Whitbread / Volvo Ocean Race yachts.
  • The Studio also has well over 3000 production yachts to its name.

For more information visit: www.humphreysdesign.com

Drax Group

  • Drax operates the largest power station in the UK, based at Selby in North Yorkshire. Since converting four of its six generating units to use biomass instead of coal, it has become the biggest renewable power generator in the country, producing enough renewable electricity for four million households.
  • As well as the engineering skill and expertise needed to convert the power station from coal to biomass, the team at Drax also had to create an entirely new global supply chain to provide the quantity of biomass required to fuel its boilers – the majority of which comes from North America and Europe.
  • Its biomass generating units deliver carbon savings of more than 80% compared to when they used coal – this includes supply chain emissions.
  • It is committed to reducing its emissions further and helping other businesses to decarbonise through its B2B electricity supply businesses, Haven Power and Opus Energy, which provide 100% renewable power to more than 350,000 business sites.
  • Drax is starting an innovative Bioenergy Carbon Capture and Storage pilot later this year which could help the power station deliver negative emissions, meaning the power it produces will help reduce the amount of carbon dioxide accumulating in the atmosphere – vital for global efforts to tackle climate change.

Ultrabulk

  • Ultrabulk Shipping is a dry bulk cargo shipping business.
  • The company’s vessels transport cargos including scrap, bio fuels, iron ore, grains, minerals, and sugar.
  • Ultrabulk operate a fleet of Handysize, Supramax, and Panamax vessels.
  • The company was founded in 1891 and is headquartered in Copenhagen, Denmark.

IMechE

  • Founded in 1847 in Birmingham, with the original statement of purpose: “To give an impulse to invention likely to be useful to the world”
  • 120,000 members globally

For more information visit www.imeche.org

InnovateUK

Innovate UK drives productivity and economic growth by supporting businesses to develop and realise the potential of new ideas.

We connect businesses to the partners, customers and investors that can help them turn ideas into commercially successful products and services and business growth.

We fund business and research collaborations to accelerate innovation and drive business investment into R&D. Our support is available to businesses across all economic sectors, value chains and UK regions.

Innovate UK is part of UK Research and Innovation.

For more information visit www.innovateuk.ukri.org

Energy revolution creating a two-tier economy leaving millions of families and businesses behind

19 November 2018

Press releases

  • Researchers from Imperial College London and E4tech warn of a two-tier economy emerging as Britain goes through an ‘energy revolution’.

  • Revolution taking place in UK energy system could unlock new growth, lower energy bills and smarter living but many in society will lose out.

  • Report reveals regional divides for the first time as communities and businesses in some areas power ahead while others risk being left behind.

  • London and Scotland are pulling ahead while the North of England and East Midlands lag furthest behind.

The research shows that businesses and families in London and Scotland are better placed to take advantage of the benefits of the ‘energy revolution’, including cheaper energy bills, electric vehicles and smart appliances.  Meanwhile, the North of England and East Midlands lag furthest behind.

Conducted independently by researchers from Imperial College London and E4tech, facilitated by Imperial Consultants and commissioned by Drax Group, the report breaks down the energy revolution into 20 metrics for the power, transport and buildings sectors, to provide a barometer of national and regional progress. Achievement against each of these metrics is scored as ‘not on track’, ‘within 90% of target’ or ‘ahead of target’.

Commenting on his team’s findings, Imperial’s Dr Iain Staffell said:

“The country is going through an energy revolution. We are creating an energy system which will power our future economy and help tackle climate change.

“But, our research reveals that Britain is at risk creating a two-tier economy, leaving millions of families and businesses less well equipped to enjoy cheaper bills and better health outcomes. Our concern is they will not be offered the same opportunities as people living in regions which are modernising their energy infrastructure.”

Responding to the findings Will Gardiner, Drax Group CEO, said:

“Great Britain needs more secure, clean energy to compete in the future economy. There is an energy revolution underway which will deliver it – but this report uncovers worrying regional divides as we go through that transition.

“Drax is already working hard to enable a zero carbon, lower cost energy future for all. We will work with all our partners including governments to ensure no-one is left behind through the energy revolution.”

Who’s ahead and behind in the energy revolution?

Differences in levels of government investment, local policies and average household income have resulted in more affluent regions leading in the energy transition.

London leads progress jointly with Scotland because its transport system is the country’s greenest. As public transport, walking and cycling are more dominant in London, a Londoner’s carbon footprint from transport is up to 2.5 times less than residents in other regions. The capital also receives 45% of national funds for rail electrification, resulting in the country’s lowest carbon emissions from rail.

It is also cheaper, on average, to own an electric car in London than in any other part of the country. This is due to the average London driver travelling shorter distances and the exemption of electric vehicles (EV) from London’s Congestion Charge.

Scotland leads in the energy revolution with London due to its successful shift from fossil fuels to renewable generated electricity. The number of EV charging points in Scotland is also high compared to the number of vehicles: despite the low population density, the average Scottish household is around 2km from a charging point, but with the lifetime cost of running an EV being the highest in Scotland and Wales, this is affecting uptake in these areas.

Residential homes in leading regions London, Scotland and the East are also more energy efficient, and more likely to score high A-C Energy Performance Certificate (EPC) ratings, and have fewer buildings rated F and G.

By comparison, all of the regions lagging behind, including Wales, Yorkshire, the East Midlands and the north of England suffer from particularly low EPC ratings.  The cost of heating, combined with lower average incomes in these areas mean that fuel poverty rates are particularly high. As the country transitions to more electric heating in future, this is likely to result in increasing energy bills in these regions unless homes can be made more energy efficient, or the cost of electric heating can be reduced, particularly for vulnerable residents.

Which sectors are ahead in the energy revolution?

The research also highlights sector differences. While work to reduce the carbon impact of the power sector is on track due to the closure of coal stations and growth in renewables, work to electrify heating, improve the energy efficiency of homes and electrify the railway is falling behind.

ENDS

Media contacts

Jenny Runnacles
E: [email protected]
T: 07747 561 760

Rachel Adeyinka
E: [email protected]
T: 07940 177 999

Editor’s Notes

  • ‘Energising Britain’ report was commissioned by Drax Group and conducted independently by academics from Imperial College London, and consultants from E4tech, facilitated through the College’s consultancy company – Imperial Consultants.
  • The metrics used to assess the state of transition in the energy system are presented as a ‘barometer’. Each barometer sets out three points:
    • The end target for the transformation for the target year in the scenario (e.g. total number of EV charging points in 2030)
    • The current state of transformation (e.g. number of charging points operational), and
    • An indication of where we would have to be to meet the 2030 target (e.g. number of charging points in 2018).
  • The end target for transformation are based on 2030 targets from the National Grid Future Energy Scenarios (FES), the Department for Business, Energy and Industrial Strategy (BEIS) and the Committee on Climate Change (CCC)
  • The geographical scope refers to the 11 regions of Great Britain (Scotland, Wales, and 9 in England). Northern Ireland was excluded due to lack of available data.
  • The metrics examined by sector include:
    • The Power System. This section includes national and regional barometers for 1. Carbon intensity of grid electricity 2. Storage deployment 3. Transmission capacity and 4. Smart meter roll-out. A regional barometer is not presented for interconnection as this is a country-to-country issue.
    • Energy in Transport. This section includes national and regional barometers for 1. GHG emissions reductions 2. Plug-in vehicles in the car fleet 3. Electric vehicle charging points 4. Hydrogen refuelling stations 5. Electric and hydrogen buses and 6. Ultra-low emission heavy goods vehicles (HGVs). A regional barometer is not represented for rail emissions; this was examined across the entire British rail industry.
    • Energy in Buildings. This section includes national and regional barometers for 1. Energy efficiency by energy performance certificate (EPC) ratings 2. Electrification of heating and 3. Heat Pump Deployment. A regional barometer is not represented for fuel poverty as there were no milestones available for 2018.
  • Progress in the industrial sector is not examined due to a lack of data.
  • View the report: drax.com/energisingbritain

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us

Imperial Consultants provide access to over 4,000 research-active expert academics and Imperial College London’s state of the art facilities to deliver innovative solutions to meet the business needs of industry, government and the third sector. Founded in 1990, Imperial Consultants is the wholly owned consultancy company of Imperial College London.

E4tech is a strategic energy consultancy. Founded in 1997 the firm provides technically informed insight on the energy transition and its implications on companies, governments and investors.

New report shows Oxford-based Opus Energy generates £350 million for the UK’s economy

12 November 2018

Press releases

In the space of a decade Opus Energy has grown from a challenger brand to the sixth largest supplier of gas and electricity to British businesses. It provides energy to over 300,000 customer meters, including national brands such as Lloyds Pharmacy and White Stuff. The company employs 150 people at its Summertown offices in Oxford, specialising in important roles such as risk management, trading, finance, sales, marketing and IT.

Opus Energy in Oxford

Opus Energy in Oxford

The report also found that in the South East of England alone, Opus Energy and Drax combined to generate £101 million in the local economy and support 1,200 jobs.

Researchers at Oxford Economics used three measures to calculate Opus Energy’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.

Opus Energy’s activities support employment in a wide range of sectors including renewable energy generation, IT, professional business services and transport.

 

Drax Group Retail CEO, Jonathan Kini said:

“This report shows that in addition to being a leading supplier of energy to British businesses, Opus Energy, and the rest of Drax Group also play an important role in the local and national economy. Through the people we employ and the businesses we use, we have supported thousands of jobs and generated nearly £1.6 billion of economic activity across the UK.”

Opus Energy COO, Nikki Flanders said:

“We have a strong link with Oxford, having been based here for several years. In addition to employing people from the local area, we use a number of businesses in the region to provide us with products and services that enable us to deliver the best possible experience for our customers.”

ENDS

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

Media contacts:

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

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

Notes to editors:

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

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us 

About Oxford Economics

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

About the study

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

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

New report shows Northampton-based Opus Energy has given the East Midlands regional economy a boost in 2017

Press releases

The energy company which specialises in supplying renewable power to businesses and is headquartered in Northampton, contributed £233 million towards GDP in the East Midlands regional economy in 2017 and supported 2,700 jobs – a huge increase from £147 million and 1,900 jobs in 2016.

The analysis from Oxford Economics found that the company which also has offices in Oxford and Cardiff contributed £365m towards UK GDP in 2017 and supported 4,200 jobs across the country.

The findings were revealed in a new report looking at the economic impact of British energy company Drax Group, which Opus Energy joined in 2017.

In the space of a decade Opus Energy has grown from a challenger brand to the sixth largest supplier of gas and electricity to British businesses. It provides energy to over 300,000 customer meters, including national brands such as Lloyd’s Pharmacy and White Stuff.

Opus Energy in Northampton

The company employs around 700 employees at its new headquarters in Northampton, Opus Energy House in The Lakes Business Park, which it moved to in early 2018.

Researchers used three measures to calculate Opus Energy’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.

Opus Energy’s activities support employment in a wide range of sectors including renewable energy generation, IT, professional business services and transport.

Opus Energy COO, Nikki Flanders added:

“We have a strong link with Northampton, having been based here for several years and renewed our commitment to the area with our move to larger premises earlier this year. This has enabled us to bring all of our Northampton staff under one roof in state-of-the-art premises.

“In addition to employing people from the local area, we use a number of businesses in the region to provide us with products and services that enable us to deliver the best possible experience for our customers – and that investment is reflected in these outstanding figures.”

Drax Group Retail CEO, Jonathan Kini said:

“This report shows that in addition to being a leading supplier of energy to British businesses, Opus Energy, and the rest of Drax Group also play an important role in the local and national economy. Through the people we employ and the businesses we use, as a Group we have supported thousands of jobs and generated nearly £1.6 billion of economic activity across the UK.”

ENDS

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

Media contacts:

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

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

Notes to editors:

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

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us 

About Oxford Economics

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

About the study

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

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

New report shows Drax contributes £431 million to Yorkshire and the Humber economy and supports over 3,200 jobs

Press releases

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

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

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

Drax Power CEO, Andy Koss said:

Andy Koss

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

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

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

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

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

Nigel Adams, MP for Selby and Ainsty said,

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

Osman Ismail, Senior Economist at Oxford Economics, said:

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

ENDS

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

Media contacts:

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

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

Notes to editors:

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

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us 

About Oxford Economics

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

About the study

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

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

Northamptonshire farm trials innovative solar power with storage battery

11 November 2018

Press releases

The low carbon pilot project will see local farmer Sue Harrison working in partnership with power firm Opus Energy to test the new technology, which has just been installed at family-run Home Farm in Braunston, Northamptonshire.

Solar panels on the cattle shed at the farm, which produces Aberdeen Angus beef as well as lamb, currently provide power to the farmhouse and the marquee from which they run their successful wedding business, which is already fully booked until 2020.

As the 50 kW panels generate more power than is consumed by the farm, the extra electricity is exported to the National Grid, and Sue and her family are paid for it by Opus Energy through a Power Purchase Agreement (PPA) – known as ‘prosuming’.

Experts at Opus Energy say the new battery technology being trialled at Home Farm, if successful, could open up revenue streams for businesses as it would allow excess electricity to be stored and then sold back to the grid when it is needed the most, therefore commanding a higher price.

Jonathan Kini, chief executive of Drax Retail, which provides power to smaller businesses through Opus Energy as well as to larger companies through Haven Power, said the pilot is one of a number of innovative low carbon schemes being looked at by the energy supplier.

“We know customers and businesses are keen to embrace sustainability wherever they can and we’re keen to help,” Jonathan commented.

“It’s early days for this project. We’ll need to see how it develops now it’s installed at Home Farm, but if it’s successful, this could provide opportunities for more and more businesses in the future to take control, generate their own energy and choose when they sell it to the grid to provide another revenue stream.

 “The electricity industry is changing quickly and increasing digitalisation will help customers save money as they learn to use less, help us move to greener, lower-carbon energy sources and also see the rise of prosumers, like Sue and her family. We’re really grateful to the Home Farm team for agreeing to take part in this trial.”

Sue, whose family have been farming in Braunston for over 60 years, and launched the wedding business in 2015 said:

“I’m really proud of the way our business has developed but I’m also keen to leave my children and even grandchildren a business which is genuinely sustainable.

“We’ve been on a PPA since 2012 but if this means we get more control of when we sell the energy we produce and don’t need, and make a little more money for the business, then that’s got to be worth doing.

“More and more wedding customers are looking for sustainable, greener venues and it would be great to able to showcase our credentials through innovations like this to future customers.”

If successful, batteries similar to the one installed at Home Farm for the trial could be available to other customers.

ENDS

Media contact

Mark Duffell
MCD Communications Ltd
E: [email protected]
T: 01484 968238
M: 07969 080272

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us

US Ambassador visits UK’s biggest power station

26 October 2018

Press releases

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

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

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

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

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

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

Mr Johnson said:

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

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

Will Gardiner, Drax Group CEO, said:

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

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

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

Andy Koss, Drax Power CEO added:

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

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

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

ENDS

Media contact:

Jessica Gorton

Drax Group Press Officer

E: [email protected]

T: 07837 946802

Notes to editors:

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

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/us

Drax Biomass provides resources to landowners, Black Bayou Lake National Wildlife Refuge

24 October 2018

Press releases

MONROE, La. – Drax Biomass, Inc. is participating in the sixth annual National Bioenergy Day by promoting sustainable forestry practices and lending a helping hand at Black Bayou Lake National Wildlife Refuge.

Led by the Biomass Power Association in partnership with the U.S. Forest Service, National Bioenergy Day facilitates interaction between bioenergy projects and their local communities, raising awareness of the economic and environmental benefits of bioenergy.

“We’re happy to provide resources to forest landowners to help them reach their land management goals,” said Richard Peberdy, Drax Biomass vice president of sustainability. “A well-managed forest can produce a significant return on investment for the landowner while also providing recreational, ecological and aesthetic benefits and opportunities.”

In a separate effort, Drax Biomass is partnering with Black Bayou Lake National Wildlife Refuge to provide interpretive signage and tree identification along its Edgewater trail.

“We are thrilled to have Drax Biomass help us with signage and expertise at the refuge,” said Nova Clarke, refuge ranger at Black Bayou Lake. “Many people don’t realize what we have to offer so this investment from Drax will go a long way in helping us promote Black Bayou and educate our visitors on the complex and unique ecosystem native to Louisiana.”

Key Facts

  • Drax Biomass is providing A Guide to Sustainable Management to forest landowners who want to learn more about land management. The Guide can be viewed here and downloaded in PDF format here.
  • For a printed copy, please send an email to [email protected].
  • The American Forest Foundation® (AFF) provides a free online tool to help landowners get started on a forest management plan.
  • Black Bayou Lake National Wildlife Refuge, located in northern Monroe, offers six maintained trails, a conversation learning center, a photo blind, observation tower and numerous educational programs for children and adults. For more information visit the website, send an email or call (318) 387-1114.
  • Drax Biomass has implemented a sustainable approach to doing business. This commitment to sustainability guides every aspect of the company’s operations, from wood sourcing to pellet production to shipment of finished products.
  • Drax Biomass is a subsidiary of Drax Group, which is playing a vital role in helping to deliver a better future by changing the way electricity is generated, supplied and used.

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About Drax Biomass

Drax Biomass, Inc. is a manufacturer of compressed wood pellets produced from sustainably managed working forests. Headquartered in Monroe, LA, with operations in the Southeastern U.S., the company is committed to supporting the communities in which we operate by promoting sustainable forestry and investing in local economic development.

Media Contact:

Annmarie Sartor
[email protected]

 

Drax Power CEO Andy Koss comments on Aurora report

22 October 2018

Press releases

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

View the research: Carbon Pricing Options to Deliver Clean Growth