Drax plans to invest a further £3 billion on renewable energy this decade after 'transformational year'

By Greg Wright
Published 24th Feb 2022, 07:43 BST
Updated 24th Feb 2022, 07:44 BST
Power producer Drax today said it plans to invest a further £3 billion on renewable energy this decade as it reported on a "transformational year" for the business.

The strategic highlights of last year included the acquisition of Pinnacle Renewable Energy Inc for £222 million and the sale of the Combined Cycle Gas Turbine (CCGT) generation assets for £186 million.

During 2021, Drax recorded adjusted EBITDA of £398 million, which is below the £412 million recorded the previous year. The total profit after tax from continuing operations was £55 million including a £49 million non-cash charge from revaluing deferred tax balances following confirmation of UK corporation tax rate increases from 2023.

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Will Gardiner, CEO of Drax Group, said “2021 was a transformational year for Drax as we became the world’s leading sustainable biomass generation and supply company, whilst continuing to invest in delivering positive outcomes for the climate, nature and people.

Will Gardiner, CEO of Drax Group, said “2021 was a transformational year for Drax as we became the world’s leading sustainable biomass generation and supply company, whilst continuing to invest in delivering positive outcomes for the climate, nature and people."Will Gardiner, CEO of Drax Group, said “2021 was a transformational year for Drax as we became the world’s leading sustainable biomass generation and supply company, whilst continuing to invest in delivering positive outcomes for the climate, nature and people."
Will Gardiner, CEO of Drax Group, said “2021 was a transformational year for Drax as we became the world’s leading sustainable biomass generation and supply company, whilst continuing to invest in delivering positive outcomes for the climate, nature and people."

“Over the past ten years Drax has invested over £2 billion in renewable energy and has plans to invest a further £3 billion this decade, supporting the global transition to a low-carbon economy.

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"Our investment has reduced our emissions from power generation by over 95% and we are the UK’s largest producer of renewable power by output. We are proud to be one of the lowest carbon intensity power generators in Europe – a significant transformation from being the largest coal power station in Western Europe.

“We have significantly advanced our plans for bioenergy with carbon capture and storage (BECCS) in the UK and globally. By 2030 we aim to deliver 12 million tonnes of negative emissions and lead the world in providing a critical technology which scientists agree is key to delivering the global transition to net zero.”