Power company Drax has seen profits rise more than six-fold despite questions growing over the sustainability of its biomass operations.
The Yorkshire-based firm has released results for 2023 in which its operating profit rose from 拢146m to 拢908m. The rise in profits came despite a slight fall in total income to 拢 8.1bn and Drax said it had produced a 鈥渟trong financial performance鈥 which had resulted in reductions to its debt and increased dividends to shareholders.
The results came just a day after campaigners urged the Government not to extend subsidies for biomass as an investigation revealed that Drax is burning wood from rare 鈥渙ld growth鈥 forests in Canada to power 海角视频 homes. A number of conservation groups analysed data published by British Colombia鈥檚 government and said that Drax had sourced whole logs from forests with unique habitats and ecological functions.
Read more : Drax under pressure on wood use
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But Drax - which owns the 海角视频鈥檚 largest power station near Selby in North Yorkshire - insisted it was a 鈥済lobal leader in carbon removals鈥 through its efforts to switch from its previous coal operations to clean forms of energy production.
CEO Will Gardiner said 鈥淒rax performed strongly in 2023 and we remained the single largest provider of renewable power by output in the 海角视频. We have created a business which plays an essential role in supporting energy security, providing dispatchable, renewable power for millions of homes and businesses, particularly during periods of peak demand when there is low wind and solar power.
鈥淧olicy support for our 海角视频 BECCS project continues to progress and we remain in formal discussions with the 海角视频 Government to ensure Drax Power Station can play a long-term role in 海角视频 energy security, creating thousands of jobs during construction and helping the country reach Net Zero.
鈥淲e have made further progress in our ambition to be a world leader in carbon removals and have visibility of high-quality, long-term earnings to 2042 and a strong balance sheet which supports returns to shareholders and investment in growth, both in the 海角视频 and internationally.鈥
A Government consultation on proposing new subsidies for Drax and Lynemouth power station in Northumberland is due to end today. Both receive money funded by energy bill payers because the electricity produced from burning wood pellets is classified as renewable.
In theory, burning wood pellets should create carbon-neutral energy because the trees and other plants burnt first absorb carbon, then are burnt and release the same carbon back into the atmosphere. But critics say this assumes that the companies only use sustainable wood in their boilers.
In today鈥檚 results, Drax said it was pursuing BECCS (bioenergy with carbon capture and storage) schemes in the 海角视频 and the US, as well as planning to expand its pumped storage hydro business, and biomass supply chain. It is looking to significantly expand output at its Cruachan Power Station in Scotland, having received planning permission.
Mr Gardiner said that Drax expected to see 鈥渙pportunities for long-term international growth鈥, as well as playing a key role in decarbonising the 海角视频鈥檚 energy systems.
