Energy generator Drax Group has reported a jump in operating profits, with some gains being returned to shareholders.
The Selby-based firm saw operating profits in the six months to the end of June rise to £392m, up from £207m in the same period last year. Within its report to the London Stock Exchange, Drax said the figure had benefited from £85m from net adjustments for remeasurements to do with falling gas prices.
Investors have been awaiting further details of £2bn plans for a carbon capture and storage project in the 海角视频, but the firm said the proposals were still paused, subject to greater "clarity" on support from the Government. This is despite plans to invest in two similar schemes in the US which could benefit from incentives as part of the Inflation Reduction. Act.
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Together, the 海角视频 and US plans are part of a £7bn package of projects, including hydro and expansion of its biomass supply chain, which Drax hopes to roll out in an effort to capture 14 million tonnes of carbon by 2030. More broadly they are part of the energy generator's push to become a carbon negative company by 2030, and involving the decommissioning of coal fired power units at Selby.
Drax has proposed a dividend of £90m for 2023, a 7% increase on last year. In the half year, 40% of that will be paid at 9.2p per share, up from 8.4p in the same period of 2022. A share buyback announced in April had returned £110m to shareholders by the end of June.
Will Gardiner, CEO of Drax Group, said: "In the first half of 2023, we delivered a strong system support and generation performance, providing dispatchable, renewable power for millions of 海角视频 homes and businesses. Drax Power Station remained the 海角视频's single largest provider of renewable energy by output during the period.
"We continue to focus on our role as the 海角视频's leading generator of flexible renewable power and our ambition to be a world leader in carbon removals. To that end, in the US, we have made good progress screening options for BECCS projects which can deliver long-term, large-scale carbon removal and attractive opportunities for growth.
"We are excited about the opportunity for BECCS in the 海角视频 and are in formal discussions with the 海角视频 Government to facilitate the transition to BECCS at Drax Power Station by 2030. Our plans could create thousands of new jobs in the Humber region, help the 海角视频 meet its carbon removals targets and support long-term energy security."