Drax says Yorkshire site will remain an ‘integral’ part of UK’s long-term energy system

It added that the figure reflects a “strong performance” across the group for the first three months of the year.

The company, which also works in pumped storage and hydro energy generation, runs the country’s largest powerplant near Selby, in North Yorkshire.

Drax’s North Yorkshire site burns biomass wood pellets in order to produce electricity, a method of energy production which has received criticism from green groups and MPs who have questioned its environmental credentials.

Drax said in its latest trading update: “Drax Power Station, the UK's largest single source of 24/7 renewable power is performing well, supporting UK energy security with flexible and reliable renewable power generation and a wide range of system support services.

“Drax believes that the size, flexibility and location of the asset enable it to be an integral long-term part of the UK energy system.”

The trading update comes after Drax last week rejected claims from MPs that companies which burn wood pellets for energy could be “marking their own homework on sustainability”.

In a report published last Friday, MPs on the Public Accounts Committee (PAC) said certification schemes, which are designed to ensure biomass used in the UK is sustainably sourced, may not be strong enough.

Drax’s wood pellets are primarily sourced from North America and Canada. As part of a BBC Panorama investigation, the company was previously accused of sourcing wood from whole trees and primary old-growth forests.

The company maintains, however, that the wood used for its pellets is legally harvested and sustainable.

A Drax spokesperson said last week: “Drax’s biomass is certified as sustainable through the Sustainable Biomass Programme (SBP), an internationally recognised certification scheme.

“Our regulator, Ofgem, has tested and benchmarked the SBP against the Government’s sustainability requirements for woody biomass, alongside other programmes.”

Drax currently receives almost a billion pounds a year in direct Government subsidies. In February, however, the Government announced a new agreement – set to run from 2027 to 2031 – which could see the firm’s subsidies effectively halved to around £470m per year.

The deal will also see Drax’s Yorkshire power station only used as a back-up to cheaper sources of renewable energy.

As part of the firm’s latest trading update, Drax Group CEO, Will Gardiner said: "Through delivering strong operational performance we have supported energy security. Thousands of workers at Drax and throughout our supply chain keep the lights on for millions of this country's homes and businesses.

"The UK's target for a clean power system and increase in intermittent renewables means more dispatchable and reliable generation will be required to help keep the lights on when the wind isn't blowing or the sun isn't shining.

"We are working to create value and growth in the short, medium and long-term, aligned to the UK's energy needs and underpinned by a strong balance sheet and cash generation."