Power surge

Drax boosts investment as demand soars

Investment is pouring into the energy mountain in Scotland

Power generator Drax said it is accelerating its investment in renewable generation, having recently submitted plans for Drax power station and for the expansion of the Cruachan Pumped Storage Power Station in Scotland.

The company has benefited from high electricity prices and strong demand for renewable power amid surging gas prices across Europe and is answering the short-term call to reignite coal during the energy emergency.

Drax has converted four coal-power units to use sustainable biomass and said its remaining two coal units would be available for use from October to March next year as part of Britain’s contingency plans to make sure of secure electricity supplies this winter.

The company plans to close its coal plants in March 2023 in line with Britain’s plan to end coal-fired power generation in 2024.

Adjusted EBITDA for the six months to the end of June came in at £225 million, up 21% (H1 2021: £186m).

It has declared an interim dividend of 8.4p per share (2021: 7.5p) and expects to propose a full year dividend up 11.7% to 21p (2021: 18.8p).

Will Gardiner, CEO  said: “In the UK and US we have plans to invest £3 billion in renewables that would create thousands of green jobs in communities that need them, underlining our position as a growing, international business at the heart of the green energy transition.”

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