About us - Drax

Drax is enabling a zero carbon, lower cost energy future

About Drax

Drax Group is a UK-based renewable energy company engaged in renewable power generation, the production of sustainable biomass and the sale of renewable electricity to businesses.

Drax operates a generation portfolio of sustainable biomass, hydro-electric and pumped hydro storage assets across four sites in England and Scotland. It is the UK’s largest source of renewable electricity. The company also operates a global bioenergy supply business with manufacturing facilities at 13 sites in the United States and Canada, producing compressed wood pellets for its own use and for customers in Europe and Asia.

The Group employs 3,400 people in the UK and North America.

Enabling a zero carbon, lower cost energy future is Drax Group’s purpose and in 2019, it announced a world-leading ambition to be carbon negative by 2030, using Bioenergy with Carbon Capture and Storage (BECCS) technology to remove carbon dioxide (CO2) from the atmosphere at scale whilst delivering reliable renewable electricity.

Our strategic aims

To build a long-term future for sustainable biomass

By expanding our sustainable bioenergy supply chain and reducing costs we are developing options for long-term biomass operations – renewable generation, negative carbon emissions, system support services and third party supply of biomass to international markets.

To be the leading provider of power system stability

Through a portfolio of flexible and renewable generation, and large industrial and commercial customer supply business, we will provide system support services to allow the power system to utilise intermittent renewable energy accelerating the UK’s decarbonisation en route to 2050.

To give our customers control of their energy

We provide our customers with renewable energy, and the opportunity to control and optimise energy use and cost, helping us support the energy system.

Our integrated flexible and renewable value chain

Our activities are underpinned by safety, sustainability, operational excellence and expertise in our markets.

We across three principal areas of activity:

Pellet production

A leading producer of wood pellets from sustainable low-value commercial forestry residues.

Our pellets provide a sustainable, low carbon fuel source that can be safely and efficiently delivered through our global supply chain. Drax’s Generation business uses these pellets to make flexible, renewable electricity for the UK.

Based in North America, this part of our business aims to increase capacity from 1.6Mt to 5Mt and reduce production costs by 2027, to support a long-term future for sustainable biomass.

Adjusted EBITDA 2020

Pellets produced 2020

Production cost 2020

£52m

1.5Mt

$153/t

(2019: £32m)(2019: 1.4Mt)(2019: $161/t)

Generation:

A portfolio of flexible and renewable UK power generation.

Our multi-site, multi-technology portfolio of flexible, low-carbon and renewable UK power assets (including biomass and hydro generation) provides power and system support services to the electricity grid.

This portfolio provides long-term earnings stability and opportunities to optimise returns from the transition to a low-carbon economy.

Drax is the UK’s largest single source of renewable electricity by output and is developing an option for carbon negative electricity using bioenergy carbon capture and storage (BECCS).

The Group also has options for system support gas assets and a long-term option for the potential expansion of pumped storage.

Adjusted EBITDA (including discontinued operations) 2020

% renewable 2020

System support and optimisation 2020

£446m

77%

£118m

(2019: £408m)(2019: 79%)(2019: £120m)

Customers

A leading supplier of renewable energy solutions to industrial and business customers.

Our Customers business is principally focused on renewable electricity sales to industrial and corporate customers. The business also offers non-generation system support and energy management services,
in addition to providing a route to market for many smaller embedded renewable generators.

Adjusted EBITDA 2020

£(39)m

(reflecting the negative impact of Covid-19 with a £60m impact.)
(2019: £17m)

 

Where we operate