Tag: sustainability

What is LNG and how is it cutting global shipping emissions?

5 July 2019

Sustainable business
Oil tanker, Gas tanker operation at oil and gas terminal.

Shipping is widely considered the most efficient form of cargo transport. As a result, it’s the transportation of choice for around 90% of world trade. But even as the most efficient, it still accounts for roughly 3% of global carbon dioxide (CO2) emissions.

This may not sound like much, but it amounts to 1 billion tonnes of CO2 and other greenhouse gases per year – more than the UK’s total emissions output. In fact, if shipping were a country, it would be the sixth largest producer of greenhouse gas (GHG) emissions. And unless there are drastic changes, emissions related to shipping could increase from between 50% and 250% by 2050.

As well as emitting GHGs that directly contribute towards the climate emergency, big ships powered by fossil fuels such as bunker fuel (also known as heavy fuel oil) release other emissions. These include two that can have indirect impacts – sulphur dioxide (SO2) and nitrogen oxides (NOx). Both impact air quality and can have human health and environmental impacts.

As a result, the International Maritime Organization (IMO) is introducing measures that will actively look to force shipping companies to reduce their emissions. In January 2020 it will bring in new rules that dictate all vessels will need to use fuels with a sulphur content of below 0.5%.

One approach ship owners are taking to meet these targets is to fit ‘scrubbers’– devices which wash exhausts with seawater, turning the sulphur oxides emitted from burning fossil fuel oils into harmless calcium sulphate. But these will only tackle the sulphur problem, and still mean that ships emit CO2.

Another approach is switching to cleaner energy alternatives such as biofuels, batteries or even sails, but the most promising of these based on existing technology is liquefied natural gas, or LNG.

What is LNG?

In its liquid form, natural gas can be used as a fuel to power ships, replacing heavy fuel oil, which is more typically used, emissions-heavy and cheaper. But first it needs to be turned into a liquid.

To do this, raw natural gas is purified to separate out all impurities and liquids. This leaves a mixture of mostly methane and some ethane, which is passed through giant refrigerators that cool it to -162oC, in turn shrinking its volume by 600 times.

The end product is a colourless, transparent, non-toxic liquid that’s much easier to store and transport, and can be used to power specially constructed LNG-ready ships, or by ships retrofitted to run on LNG. As well as being versatile, it has the potential to reduce sulphur oxides and nitrogen oxides by 90 to 95%, while emitting 10 to 20% less CO2 than heavier fuel alternatives.

The cost of operating a vessel on LNG is around half that of ultra-low sulphur marine diesel (an alternative fuel option for ships aiming to lower their sulphur output), and it’s also future-proofed in a way that other low-sulphur options are not. As emissions standards become stricter in the coming years, vessels using natural gas would still fall below any threshold.

The industry is starting to take notice. Last year 78 vessels were fitted to run on LNG, the highest annual number to date.

One company that has already embraced the switch to LNG is Estonia’s Graanul Invest. Europe’s largest wood pellet producer and a supplier to Drax Power Station, Graanul is preparing to introduce custom-built vessels that run on LNG by 2020.

The new ships will have the capacity to transport around 9,000 tonnes of compressed wood pellets and Graanul estimates that switching to LNG has the potential to lower its CO2 emissions by 25%, to cut NOx emissions by 85%, and to almost completely eliminate SO2 and particulate matter pollution.  

Is LNG shipping’s only viable option?

LNG might be leading the charge towards cleaner shipping, but it’s not the only solution on the table. Another potential is using advanced sail technology to harness wind, which helps power large cargo ships. More than just an innovative way to upscale a centuries-old method of navigating the seas, it is one that could potentially be retrofitted to cargo ships and significantly reduce emissions.

Drax is currently taking part in a study with the Smart Green Shipping Alliance, Danish dry bulk cargo transporter Ultrabulk and Humphreys Yacht Design, to assess the possibility of retrofitting innovative sail technology onto one of its ships for importing biomass.

Manufacturers are also looking at battery power as a route to lowering emissions. Last year, boats using battery-fitted technology similar to that used by plug-in cars were developed for use in Norway, Belgium and the Netherlands, while Dutch company Port-Liner are currently building two giant all-electric barges – dubbed ‘Tesla ships’ – that will be powered by battery packs and can carry up to 280 containers.

Then there are projects exploring the use of ammonia (which can be produced from air and water using renewable electricity), and hydrogen fuel cell technology. In short, there are many options on the table, but few that can be implemented quickly, and at scale – two things which are needed by the industry. Judged by these criteria, LNG remains the frontrunner.

There are currently just 125 ships worldwide using LNG, but these numbers are expected to increase by between 400 and 600 by 2020. Given that the world fleet boasts more than 60,000 commercial ships, this remains a drop in the ocean, but with the right support it could be the start of a large scale move towards cleaner waterways.

The renewable pioneers

18 January 2019

Power generation

People love to celebrate inventors. It’s inventors that Apple’s famous 90s TV ad claimed ‘Think Different’, and in doing so set about changing the world. The renewable electricity sources we take for granted today all started with such people, who for one reason or another tried something new.

These are the stories of the people behind five sources of renewable electricity, whose inventions and ideas could help power the world towards a zero-carbon future.

The magician’s hydro house

Using rushing rivers as a source of power dates back centuries as a mechanised way of grinding grains for flour. The first reference to a watermill dates from all the way back to the third century BCE.

However, hydropower also played a big role in the early history of electricity generation – the first hydroelectric scheme first came into action in 1878, six years before the invention of the modern steam turbine.

What important device did this early source of emissions-free electricity power? A single lamp in the Northumberland home of Victorian inventor William Armstrong. This wasn’t the only feature that made the house ahead of its time.

Water pressure also helped power a hydraulic lift and a rotating spit in the kitchen, while the house also featured hot and cold running water and an early dishwasher. One contemporary visitor dubbed the house a ‘palace of a modern magician’.

The first commercial hydropower power plant, however, opened on Vulcan Street in Appleton, Wisconsin in 1882 to provide electricity to two local paper mills, as well as the mill owner H.J. Rogers’ home.

After a false start on 27 September, the Vulcan Street Plant kicked into life in earnest on 30 September, generating about 12.5 kilowatts (kW) of electricity. It was very nearly America’s first ever commercial power plant, but was beaten to the accolade by Thomas Edison’s Pearl Street Plant in New York which opened a little less than a month earlier.

The switch to silicon that made solar possible

When the International Space Station is in sunlight, about 60% the electricity its solar arrays generate is used to charge the station’s batteries. The batteries power the station when it is not in the sun.

For much of the 20thcentury solar photovoltaic power generation didn’t appear in many more places than on calculators and satellites. But now with more large-scale and roof-top arrays popping up, solar is expected to generate a significant portion of the world’s future energy.

It’s been a long journey for solar power from its origins back in 1839 when 19-year old aspiring physicist Edmond Becquerel first noticed the photovoltaic effect. The Frenchman found that shining light on an electrode submerged in a conductive solution created an electric current. He did not, however, have any explanation for why this happened.

American inventor Charles Fritts was the first to take solar seriously as a source of large-scale generation. He hoped to compete with Thomas Edison’s coal powered plants in 1883, when he made the first recognisable solar panel using the element selenium. However, they were only about 1% efficient and never deployed at scale.

It would not be until 1953, when scientists Calvin Fuller, Gerald Pearson and Daryl Chapin working at Bell Labs cracked the switch from selenium to silicon, that the modern solar panel was created.

Bell Labs unveiled the breakthrough invention to the world the following year, using it to power a small toy Ferris wheel and a radio transmitter.

Fuller, Pearson and Chapin’s solar panel was only 6% efficient, a big step forward for the time, but today panels can convert more than 40% of the sun’s light into electricity.

The wind pioneers who believed in self-generation

Offshore wind farm near Øresund Bridge between Sweden and Denmark

Like hydropower, wind has long been harnessed as a source of power, with the earliest examples of wind-powered grain mills and hydro pumps appearing in Persia as early as 500 BC.

The first electricity-generating windmill was used to power the mansion of Ohio-based inventor Charles Brush. The 60-foot (18.3 metres) wooden tower featured 144 blades and supplied about 12 kW of electricity to the house.

Charles Brush’s wind turbine charged a dozen batteries each with 34 cells.

The turbine was erected in 1888 and powered the house for two decades. Brush wasn’t just a wind power pioneer either, and in the basement of the mansion sat 12 batteries that could be recharged and act as electricity sources.

Small turbines generating between 5 kW and 25 kW were important at the turn of the 19thinto the 20thcentury in the US when they helped bring electricity to remote rural areas. However, over in Denmark, scientist and teacher Poul la Cour had his own, grander vision for wind power.

La Cour’s breakthroughs included using a regulator to maintain a steady stream of power, and discovering that a turbine with fewer blades spinning quickly is more efficient than one with many blades turning slowly.

He was also a strong advocate for what might now be recognised as decentralisation. He believed wind turbines provided an important social purpose in supplying small communities and farms with a cheap, dependable source of electricity, away from corporate influence.

In 2017, Denmark had more than 5.3 gigawatts (GW) of installed wind capacity, accounting for 44% of the country’s power generation.

The prince and the power plant

Larderello, Italy

Italian princes aren’t a regular sight in the history books of renewable energy, but at the turn of the last century, on a Tuscan hillside, Piero Ginori Conti, Prince of Trevignano, set about harnessing natural geysers to generate electricity.

In 1904 he had become head of a boric acid extraction firm founded by his wife’s great-grandfather. His plan for the business included improving the quality of products, increasing production and lowering prices. But to do this he needed a steady stream of cheap electricity.

In 1905 he harnessed the dry steam (which lacks moisture, preventing corrosion of turbine blades) from the geographically active area near Larderello in Southern Tuscany to drive a turbine and power five light bulbs. Encouraged by this, Conti expanded the operation into a prototype power plant capable of powering Larderello’s main industrial plants and residential buildings.

It evolved into the world’s first commercial geothermal power plant in 1913, supplying 250 kW of electricity to villages around the region. By the end of 1943 there was 132 megawatts (MW) of installed capacity in the area, but as the main source of electricity for central Italy’s entire rail network it was bombed heavily in World War Two.

Following reconstruction and expansion the region has grown to reach current capacity of more than 800 MW. Globally, there is now more than 83 GW of installed geothermal capacity.

The engineer who took on an oil crisis with wood 

Compressed wood pellet storage domes at Baton Rouge Transit, Drax Biomass’ port facility on the Mississippi River

While sawmills had experimented with waste products as a power sources and compressed sawdust sold as domestic fuel, it wasn’t until the energy crisis of the 1970s that the term biomass was coined and wood pellets became a serious alternative to fossil fuels.

As a response to the 1973 Yom Kippur War, the Organization of Arab Petroleum Exporting Countries (OPEC) placed oil embargoes against several nations, including the UK and US. The result was a global price increase from $3 in October 1973 to $12 in March 1974, with prices even higher in the US, where the country’s dependence on imported fossil fuels was acutely exposed.

One of the most vulnerable sectors to booms in oil prices was the aviation industry. To tackle the growing scarcity of petroleum-based fuels, Boeing looked to fuel-efficiency engineer Jerry Whitfield. His task was to find an alternative fuel for industries such as manufacturing, which were hit particularly hard by the oil shortage and subsequent recession. This would, in turn, leave more oil for planes.

Wood pellets from Morehouse BioEnergy, a Drax Biomass pellet plant in northern Louisiana, being unloaded at Baton Rouge Transit for storage and onward travel by ship to England.

Whitfield teamed up with Ken Tucker, who – inspired by pelletised animal feed – was experimenting with fuel pellets for industrial furnaces. The pelletisation approach, combined with Whitfield’s knowledge of forced-air furnace technology, opened a market beyond just industrial power sources, and Whitfield eventually left Boeing to focus on domestic heating stoves and pellet production.

One of the lasting effects of the oil crisis was a realisation in many western countries of the need to diversify electricity generation, prompting expansion of renewable sources and experiments with biomass cofiring. Since then biomass pellet technology has built on its legacy as an abundant source of low-carbon, renewable energy, with large-scale pellet production beginning in Sweden in 1992. Production has continued to grow as more countries decarbonise electricity generation and move away from fossil fuels.

Since those original pioneers first harnessed earth’s renewable sources for electricity generation, the cost of doing so has dropped dramatically and efficiency skyrocketed. The challenge now is in implementing the capacity and technology to build a safe, stable and low-carbon electricity system.

Is biomass demand out of control?

13 April 2018

Sustainable bioenergy

Electricity systems around the world are decarbonising and increasingly switching to renewable power sources. While intermittent sources, such as solar and wind, are the fastest growing types of renewables being installed globally, the reliability and flexibility of biomass and its ability to offer grid stabilisation services such as frequency control and inertia make it an increasingly necessary source of renewable power. According to the International Energy Agency biomass generation is forecast to expand as planned projects come online.

Sustainable wood pellets

A versatile resource

Biomass comes in many different forms.  When looking to assess future demand and use, it is important to recognise benefits that different types of biomass bring. Compressed wood pellets are just one small part of the biomass spectrum, which includes many forms of agricultural and livestock residues, waste and bi-products – much of which is currently discarded or underutilised.

Maximising the use of these wastes and residues provides plenty of scope for expansion of the biomass energy sector around the world. The global installed capacity for biomass generation is expected to reach close to 140 gigawatts (GW) by 2026, which will be fuelled primarily by expansion in Asia using residues from food production and the forestry processing industry.

However, the use of woody biomass can also provide many benefits too, such as supplying a market for thinnings, providing a use for harvesting residues, encouraging better forest management practices and generating increased revenue for forest owners.

How much surplus exists?

In areas like the US South, traditional markets for forest products have declined, whilst forest growth has significantly increased. According to the USDA Forest Inventory and Analysis (FIA) data, there is an average annual surplus of growth in the US South of more than 176 million cubic metres compared to removals – that’s enough to make around 84 million tonnes of wood pellets a year, from just one supply region.

Of course, not all of this surplus growth could or should be used for bio-energy, much of it is suitable for high value markets like saw-timber or construction and some of it is located on inaccessible or protected sites. However, new and additional markets are essential to maintain the health of the forest resource and to encourage forest owners to retain and maintain their forest assets.

In the current wood pellet supply regions for Europe, Pöyry management consulting has calculated that there is a surplus of low grade wood fibre and residues that could make an additional 140 million tonnes of wood pellets each year.

Wood pellets in context

Sustainable wood pellets for biomass

Compressed wood pellets on a conveyor belt

It is also necessary to look at the global production of all wood products to put wood pellet production into context. In 2016 the global production of industrial roundwood (the raw material used for construction, furniture, paper and other wood products) was 1.87 billion cubic metres, while the global production of wood fuel (used for domestic heating and cooking) was 1.86 billion cubic metres[1]. Only around 1.6% of this feedstock was used to make wood pellets, both for industrial energy and residential heat. The total production of wood pellets in 2016 was 28.4 million tonnes, of which only 45% was used for industrial energy[2].

While Forestry consulting and research firm Forisk predicts demand for industrial wood pellets (those used in electricity generation rather than residential heating) will grow globally at an annual rate of 15% for the next five years, reaching 27.5 megatonnes (Mt) by 2023, they are also clear that this growth, in context, will not impact forest volumes or other markets:

‘The wood pellet industry in the US South is not exploding, it is a tiny component of the overall market. Forest volumes in the South in total will continue to grow for decades no matter what bioenergy markets or housing markets do. The wood pellet sector simply and unequivocally cannot compete economically with US pulp and paper mills (80% of pulpwood demand in South) for raw material on a head-to-head basis[3].’

So, while demand for wood pellets is likely to increase over the next 10 years, this increase will be well within the scope of existing surplus fibre. The question, therefore, is can suppliers keep up with this demand? And can they do this while ensuring it remains sustainable, reliable and renewable?

What’s driving demand?

In the short-term, intelligence firm Hawkins Wright estimates global demand will increase by almost 30% during 2018 to reach 20.4 Mt, while Forisk predicts a smaller jump: an almost 5 Mt increase compared to 2017.

Most of this will continue to come from Europe (73% of global demand by 2021, more than 80% in 2018), where projects such as Lynemouth Power Station’s conversion from coal to biomass, as well as five co-firing units in the Netherlands are all set to come online very soon. While smaller in number, Asia is also developing a growing appetite for biomass and in 2018 demand is forecast to grow by 1.98 Mt.

These estimates might paint a picture of a continually soaring demand, but Forisk’s forecast actually expect this growth to plateau, levelling off around 2023 at 27.5 Mt. Hawkins Wright expects a similar slow down, forecasting manageable growth of under 15% between 2023 and 2026.

A forestry specialist at Drax Group, believes this plateau could come even sooner.

“Current and future forecasts in industrial wood pellet demand are based on a series of planned conversions and projects coming online,” he explains.

“But once these projects are active, demand in Europe will likely plateau around 2021 and then gradually reduce as various EU support schemes for industrial biomass come to an end. Any long term use of biomass is likely to be based on agricultural residues and wastes.”

But even with this expected slowdown, the biomass demand of the near future will be substantially higher than it is right now. So, the question remains, can suppliers meet the need for biomass pellets?

Responding to today’s growing demand

Meeting this growing demand depends on two factors: sufficient raw materials and the production capabilities to turn those materials into biomass pellets.

In today’s market, there’s no shortage of raw materials and low grade fibre. Instead, what could cause challenges is the production of pellets.

Hawkins Wright reports the capacity for global industrial pellet production was roughly 21.4 Mt a year at the end of 2017 and will increase by a further 3 Mt by 2019 as facilities currently under construction reach completion.

It means that to meet even Forisk’s conservative 27.5 Mt prediction by 2023, pellet production needs to increase. However, Drax’s forestry specialist points to the three to four years needed to complete pellet facilities and the relatively short period of time financial support programmes will remain in place as something that could lead to a slowdown in new plants coming online. Instead, he says, expansions of existing plants and the increased use of small-scale facilities will become crucial to increasing overall production.

However the biomass market changes and develops, it remains critical that proper regulation is in place, efficiencies are found and that technological innovation continues within the forestry industry so forests are grown and managed sustainably.

As we move into a low-carbon future we know that biomass demand will increase. But for this to be truly beneficial and sustainable we need to ensure we are not only meeting the demand of today but also of tomorrow, the day after tomorrow and beyond.

Discover the steps we take to ensure our wood pellet supply chain is better for our forests, our planet and our future. Visit ForestScope.info. 

[1] Source: FAOSTAT

[2] Source: Hawkins Wright, The Outlook for Wood Pellets, Q4 2017

[3] https://www.forisk.com/blog/2015/10/23/nibbling-on-a-chicken-or-nibbling-on-an-elephant-another-example-of-incomplete-and-misleading-analysis-of-us-forest-sustainability-and-wood-bioenergy-markets/

Building a sustainable business

Will Gardiner, Chief Executive Officer, Drax Group

21 March 2018

Opinion

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

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

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

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

Some of the highlights include:

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

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

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

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

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

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

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

The sustainable development goals

Sustainable business

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

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

Affordable and clean energy

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

Customers

Low Carbon

Decent work and economic growth

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

Society

Industry, innovation and infrastructure

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

Customers

Low Carbon

Climate action

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

Low Carbon

Life on land

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

Low Carbon

Sourcing

Environment

Partnerships for the goals

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

Stakeholder Engagement

Society

Commitment to the UNGC

Sustainable business

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

Human rights

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

Modern Slavery Statement

Labour

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

People

Environment

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

Customers

Low Carbon

Environment

Anti-corruption

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

Ethics and Integrity

Drax Biomass creates value in the United States

Sustainable bioenergy

In many US States, including those in which Drax Biomass operates, there is a system of local taxation called “severance tax”. This is a tax raised on each tonne of timber felled in a State, and is usually paid by the landowner.

Drax Biomass has elected to pay this tax directly, on behalf of the supplier, on all roundwood received at each pellet plant.

In Mississippi alone, over a 12-month period, severance tax in excess of $80,000 was paid. The monies raised are used for local schools, roads and other public services.

People strategy

Sustainable business

Our people strategy: One Drax

Following extensive consultation with employees, we developed our people strategy to 2020 – One Drax. It has been designed to address the key issues that were raised by employees in our 2016 employee survey, such as the need for clearer learning and development programmes and more effective internal communications. The strategy focuses on valuing our people, driving business performance and developing talent to deliver our strategic and operational objectives.

We launched the five aspects of the strategy: my career, my performance, our behaviours, our reward, my recognition. In 2018, we will focus on all of these aspects and, in particular, our reward, my recognition and my career.

Behavioural framework

We have developed a number of HR programmes in line with our people strategy. The foundation of this is a new behavioural framework that identifies positive behaviours reflecting our Company values: honest, energised, achieving, together. The behaviours are integrated into all areas of our people management processes at Drax Group. The HR team consulted with one in five employees across the business, including senior leaders and union representatives, to develop the framework.

In 2018 we will further embed the behavioural framework and our Company values into our culture by developing an online tool for employees to evaluate how they demonstrate the behaviours.

Developing our people / apprenticeships

At Drax Power, we have a proud history of apprenticeships, with the majority remaining to work at Drax and progressing through the Company.

Mick Moore joined Drax on 7 September 1976 as a craft apprentice.

On completion of his apprenticeship, Mick continued to further his education and completed an HNC in Electrical & Electronic Engineering. After a 10-year break he resumed his further education, graduating from Humberside & Lincolnshire University with a degree in Electronics & Control Engineering, achieving Chartered Engineering status with the Institute of Electrical Engineers in 1999.

Having worked at Drax for 41 years, Mick’s career has included roles such as Instrument Mechanic, various engineering grades from Assistant Engineer to Process Control Engineer & Maintenance Section Head. Mick is now the Electrical, Control & Instrumentation Engineering Section Head for Drax Power and is currently responsible for a team of 51 people.