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

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

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

Drax Power CEO, Andy Koss said:

Andy Koss

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

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

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

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

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

Nigel Adams, MP for Selby and Ainsty said,

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

Osman Ismail, Senior Economist at Oxford Economics, said:

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

ENDS

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

Media contacts:

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

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

Notes to editors:

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

About Drax

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

The Group includes:

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

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

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

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

For more information visit www.drax.com/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

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

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.

###

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]

“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

During the visit to C-Capture’s premises, Rachel Reeves MP heard how a Bioenergy Carbon Capture and Storage (BECCS) pilot project is expected to get underway at Drax Power Station this autumn, which will be the first of its kind in Europe.

The chemistry being used in the pilot project has been developed by C-Capture – a Leeds University spin-out. During her visit to the company’s facilities, Rachel Reeves, who is MP for Leeds West, got to see some of the equipment which will be installed at Drax Power Station for the pilot.

Rachel Reeves said:

“This BECCS project between C-Capture and Drax is ground-breaking. If it works, it could put Yorkshire and the UK at the forefront of the race to develop the BECCS technology which is essential to tackling climate change. It’s very exciting and I look forward to hearing more as the pilot progresses.”

BECCS is vital to global efforts to combat climate change because the technology will mean the gases that cause global warning can be removed from the atmosphere at the same time as electricity is produced. This means power generation would no longer contribute to climate change, but would start to reduce the carbon accumulating in the atmosphere.

Drax, the biggest power station in the UK, near Selby in North Yorkshire, is investing £400,000 in the BECCS pilot project with C-Capture. Since it converted two thirds of the power station to use biomass instead of coal it has become the biggest single site renewable power generator in the country and the largest decarbonisation project in Europe.

Andy Koss, Drax Power CEO, said:

“This BECCS pilot has the potential to make the renewable electricity produced at Drax Power Station carbon negative. If we’re serious about meeting our climate targets, then negative emissions are a must – and BECCS is what’s going to get us there.”

Chris Rayner, founder of C-Capture and Professor of Organic Chemistry at the University of Leeds, added:

“During the six month pilot at Drax, we aim to use our chemistry to capture a tonne of carbon a day and in the process demonstrate that if the project was scaled up we could achieve one of the holy grails of CO₂ emissions strategies – negative emissions in power production. That’s where we believe the potential CO₂ emissions reductions are likely to be the greatest.”

C-Capture is a spin-out from the Department of Chemistry at the University of Leeds, established through funding from IP Group Plc.

ENDS

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

Editor’s Notes

• Drax Power Station is the single largest user of sustainable biomass for power in the world – 65% of the electricity it produced in 2017 was renewable, enough to power four million households.
• Biomass, such as sustainably sourced compressed wood pellets, is a renewable fuel – the CO₂ captured when it grew is equal to the emissions it releases when used to generate electricity so it does not contribute new carbon to the biosphere. When coupled with CCS, the overall process of biomass electricity generation removes more CO₂ from the atmosphere than it releases.

• A report by the Energy Technology Institute in 2016 has suggested that by the 2050s BECCS could deliver roughly 55 million tonnes of net negative emissions a yearin the UK – approximately half the nation’s emissions target.

• The government’s Clean Growth Strategy identified ‘sustainable biomass power stations used in tandem with CCUS technology’ as a potential route to achieving long-term decarbonisation between now and 2050.
• C-Capture is a spin out from the Chemistry Department at Leeds University and has attracted support from IP Group, the Department for Business Energy and Industrial Strategy’s Energy Entrepreneurs Fund and the CO₂ Capture Project for CO₂ capture technology, which has potential in a range of areas including biogas upgrading, natural gas sweetening and hydrogen production. 

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