Investment plan

Drax presents plan to invest £ 3bn in continued biomass push

Power producer Drax has presented a £ 3 billion investment plan after issuing a bullish update on its financial performance.

The North Yorkshire-based company has set important new targets for pellet production and the sale of biomass as it continues to move away from fossil fuels to more environmentally friendly methods of power generation.

He said he wanted to develop new opportunities to use bioenergy with carbon capture and storage (BECCS) and planned an investment of £ 3 billion between 2022 and 2030.

Read more : go here for more stories from the energy sector

The company’s announcement came as a separate trade statement said the company’s adjusted EBITDA for 2021 will be at the high end of analysts’ current range.

CEO Will Gardiner said: “Drax has made excellent progress in 2021, providing a solid foundation for future growth. We have taken our BECCS project forward – a core part of the East Coast Cluster which was recently selected to be one of the UK’s two CSC priority projects. And we are now defining a strategy to move the business forward, enabling Drax to make an even greater contribution to the global efforts to achieve net zero.

“We believe Drax can generate growth and become a global leader in sustainable biomass and negative emissions and a UK leader in renewable and distributable generation. We aim to double our capacity to produce sustainable biomass by 2030 – creating opportunities to double our sales in Asia and Europe, where demand for biomass increases as countries move away from coal.

“As the world leader in negative emissions, we are going to step up our ambitions internationally. Drax now targets 12 million tonnes of carbon uptake each year by 2030 using bioenergy with carbon capture and storage (BECCS).

“This includes the negative emissions that we can generate at the Drax power station in the UK and through potential BECCS new build projects in North America and Europe, supporting a new sector of the economy, which create jobs, clean growth and attractive export opportunities. “

Drax said he sees “significant opportunities” to grow its biomass supply chain, biomass sales and BECCS as it aims to be a carbon-negative company by 2030.