Latest news with #WillGardiner
Yahoo
01-05-2025
- Politics
- Yahoo
On this day in 2024: 'Hit the Road Drax' sung at London protest
On this day in 2024, the York Press reported that climate protesters had targeted North Yorkshire energy firm Drax at its annual shareholder meeting. Broadcaster Chris Packham and members of the Axe Drax campaign group gathered outside the meeting at 133 Houndsditch in the City of London on April 25, 2024. The firm, which runs a power station near Selby in North Yorkshire and burns wood pellets to generate electricity, "has been accused of causing environmental destruction and pollution across its supply chain," in the words of a reporter for this paper. As the meeting began, chief executive Will Gardiner and chairwoman Andrea Bartone were repeatedly interrupted by protesters who were then carried from the room by security. The chaotic scene saw people trying to storm the stage and delivering a choir rendition of 'Hit the Road Drax.' Ahead of the Drax AGM, Mr Packham said: "In a global biodiversity crisis, you cannot justify felling and transporting wood from some of the planet's most precious natural resources." Krystal Martin, a resident of Gloster, Mississippi, where Drax operates a pellet plant, travelled from the US to the UK for the meeting to confront Mr Gardiner. Ahead of the meeting, she said: "We are tired of false promises and being ignored. "People in my town are being harmed and we want the UK government to wake up and pay attention. 'If they give Drax more money, more people will be harmed. "They must listen to us now before it's too late." In a statement, a Drax spokesperson said: "AGMs are the cornerstone of shareholder democracy. "Unfortunately, some activists, who set out to disrupt the event and intimidate attending shareholders and Drax employees, were removed or prevented from attending the meeting. "Safety and environmental compliance are our top priority. "Drax is committed to ensuring the biomass we source delivers positive outcomes for the climate, for nature, and for the communities in which we operate. "Safety and environmental compliance are our top priority." More information about Drax is available at
Yahoo
27-02-2025
- Business
- Yahoo
UK's Drax reports higher annual profit, helped by rising renewable power
By Susanna Twidale LONDON (Reuters) - British power company Drax Group (DRX.L) on Thursday reported a 5.5% increase in annual profit, in line with forecasts and due to an increase in renewable power generation and an improved performance from its pellet division. Drax, which has converted coal plants to run on biomass, provides around 6% of Britain's electricity. Earlier this month, the government extended subsidies for the biomass units that were due to expire in 2027 until 2031 but said they would be half the current level. Under the new subsidy system the plants will run less frequently and only when the power is needed, the government said. The new deal "is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country,' CEO Will Gardiner said in the results statement. Biomass power production was 27% higher last year compared with 2023 with few maintenance outages, the company said. The company reported earnings before interest, tax, depreciation and amortization of 1.06 billion pounds ($1.34 billion) for 2024. Green groups opposing the use of biomass say production of the pellets can contribute to deforestation and question whether the process of burning the pellets is really sustainable. The company says its pellets come from wood residuals or byproducts from trees primarily used for lumber, and that sustainably managed forests can help to increase forest growth. ($1 = 0.7899 pounds)
The Guardian
27-02-2025
- Business
- The Guardian
Drax power plant owner reports highest earnings since pandemic
The owner of the Drax power plant has reported its highest earnings since the coronavirus pandemic only weeks after the government said that controversial subsidies for biomass power had allowed it to make 'unacceptably large profits'. Drax Group said its adjusted earnings rose to £1.06bn last year, narrowly above its profits of £1.01bn the year before. The profits are largely built on the billion-pound subsidies given to the North Yorkshire power plant every year to support its biomass generation, which is considered a form of renewable energy despite claims from climate scientists that it may increase emissions in the short-term. The government agreed earlier this month to extend the group's subsidies beyond a 2027 deadline to 2031. It insisted that the plant, which supplies about 5% of the UK's electricity, would be used only as backup for when wind and solar power was in short supply, playing a 'much more limited role' in future. The energy minister Michael Shanks said at the time that the previous subsidy arrangement had allowed Drax to make 'unacceptably large profits' and that the new deal would be a 'step-change in value for money and sustainability'. The FTSE 250 company's power generation increased by more than a quarter last year, according to Drax, with only a single major planned outage, which it completed ahead of schedule. Will Gardiner, Drax Group's chief executive, said: 'We produced over 25% more dispatchable renewable power in 2024, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion He described the new subsidy arrangement as 'a major milestone for the business' that would mean the site would 'continue to generate electricity for the country, especially when the wind isn't blowing, and the sun isn't shining'.
Reuters
27-02-2025
- Business
- Reuters
UK's Drax reports higher annual profit, helped by rising renewable power
LONDON, Feb 27 (Reuters) - British power company Drax Group (DRX.L), opens new tab on Thursday reported a 5.5% increase in annual profit, in line with forecasts and due to an increase in renewable power generation and an improved performance from its pellet division. Drax, which has converted coal plants to run on biomass, provides around 6% of Britain's electricity. Earlier this month, the government extended subsidies for the biomass units that were due to expire in 2027 until 2031 but said they would be half the current level. Under the new subsidy system the plants will run less frequently and only when the power is needed, the government said. The new deal "is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country,' CEO Will Gardiner said in the results statement. Biomass power production was 27% higher last year compared with 2023 with few maintenance outages, the company said. The company reported earnings before interest, tax, depreciation and amortization of 1.06 billion pounds ($1.34 billion) for 2024. Green groups opposing the use of biomass say production of the pellets can contribute to deforestation and question whether the process of burning the pellets is really sustainable. The company says its pellets come from wood residuals or byproducts from trees primarily used for lumber, and that sustainably managed forests can help to increase forest growth. ($1 = 0.7899 pounds) The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Sky News
10-02-2025
- Business
- Sky News
Drax subsidies and energy production role cut by government
The contribution to energy bills from a government deal with a biomass electricity provider will fall in the coming years as subsidies are cut under a new agreement. The Department for Energy Security and Net Zero (DESNZ) revealed that consumers would save £170m per year under a new deal with Drax covering 2027-2031. That projection is based on the halving of the North Yorkshire power station's government subsidy in that time. DESNZ said Drax would also play a much more limited role in the power system in that time, providing electricity only when it is really needed. Drax, a former coal-fired plant which now burns wood pellets, is currently paid to generate energy using wood that must be 70% sustainable. That sustainability figure will rise to 100% by 2027 under the new deal. Its operations are classed, controversially, as renewable in the UK because the emissions released from burning the wood can be reabsorbed by new trees that grow in the place of those burned. Drax is currently classed as Britain's largest renewable power generator by output as it has the capacity to power the equivalent of five million homes. The company, which has previously been fined for misreporting data on wood it has used and criticised over its CO2 emissions, also operates hydro power projects. The government is aiming to decarbonise the power sector by 2030. 5:30 Meeting this target will require a large increase in renewable energy, such as wind and solar, as well as projects that store energy for when there is insufficient wind or sun. Ministers say a new energy mix, that cuts the country's reliance on internationally priced gas, will not only bring down bills in future but guarantee domestic power supplies. New nuclear is also part of that equation. DESNZ said: "This government will do whatever it takes to deliver energy security and protect billpayers now and into the future". Drax shares rose by 6% on news of the new settlement which guarantees the Selby power station's future. Group chief executive Will Gardiner said: "The Government's low-carbon dispatchable CfD framework for biomass, announced today, is an investment in UK energy security, which will result in a net saving for consumers and support the delivery of Clean Power 2030. "Analysis from Baringa indicates the proposed agreement will result in a £1.6-3.1 billion reduction in electricity system costs, versus the construction of new fossil fuel power stations, and Government has concluded today that Drax offers the lowest cost option for bill payers during this period." He added: "Under this proposed agreement, Drax can step in to increase generation when there is not enough electricity, helping to avoid the need to burn more gas or import power from Europe, and when there is too much electricity on the UK grid, Drax can turn down and help to balance the system. "The size, flexibility and location of the power station makes it important for UK energy security and the proposed agreement helps protect the jobs and skills of today and the future, creating options for billions of pounds of investment in growth across Britain, including the development of large-scale carbon removals and data centres."
