Author: Graham Self

Notice of half year results announcement

RNS Number: 1115G
Drax Group plc
(“Drax” or the “Group”; Symbol:DRX)

Drax Group plc (“Drax”) confirms that it will be announcing its Half Year Results for the six months ended 30 June 2021 on Thursday 29 July 2021.

Information regarding the results presentation and webcast is detailed below.

Results presentation and webcast arrangements

Management will host a webcast presentation for analysts and investors at 9:00am (UK Time), Thursday 29 July 2021.

The presentation can be accessed remotely via a live webcast link, as detailed below. After the meeting, the webcast recording will be made available and access details of this recording are also set out below.

A copy of the presentation will be made available from 7:00am (UK time) on Wednesday 29 July 2021 for download at: www.drax.com/investors/announcements-events-reports/presentations/

Event Title:

Drax Group plc: Half Year Results

Event Date:

Thursday 29 July 2021
9:00am (UK time)

Webcast Live Event Link:

https://secure.emincote.com/client/drax/drax015

Conference call and pre-register Link:

https://secure.emincote.com/client/drax/drax015/vip_connect

Start Date:

Thursday 29 July 2021

Delete Date:

Thursday 31 December 2021

Archive Link:

https://secure.emincote.com/client/drax/drax015

For further information, please contact:

[email protected]

Website: www.Drax.com

 

Refinancing of Pinnacle Debt with Lower Cost ESG Facility

Demopolis wood pellet plant being constructed

RNS Number: 9930E
Drax Group plc
(“Drax” or the “Group”; Symbol:DRX)

Drax is pleased to announce that it has completed the refinancing of the Canadian dollar facilities it acquired as part of the Group’s acquisition of Pinnacle Renewable Energy Inc. (Pinnacle) in April 2021.

The new C$300 million term facility (“the Facility”) matures in 2024, with an option to extend by two years(1), and has a customary margin grid referenced over CDOR(2).

A Pinnacle wood pellet plant

A Pinnacle wood pellet plant

The Facility reduces further the Group’s all-in cost of debt to below 3.5% and includes an embedded ESG component which adjusts the margin payable based on Drax’s carbon intensity measured against an annual benchmark.

The Facility, along with surplus cash, replaces Pinnacle’s approximately C$435 million facilities which had a cost of over 5.5%.

Enquiries

Drax Investor Relations: Mark Strafford

+44 (0) 7730 763 949

Media

Drax External Communications: Ali Lewis

+44 (0) 7712 670 888

Website: www.Drax.com

END

What is direct air carbon capture and storage (DACS)?

What is direct air carbon capture and storage (DACS)?

Direct air carbon capture and storage (DACS, sometimes referred to as DAC or DACCS) is one of the few technologies that can remove carbon dioxide (CO2) from the atmosphere. Unlike other carbon removal technologies that capture CO2 emissions during the process of generating electricity or heat, DACS can be deployed anywhere in the world it can tap into a supply of electricity.

CO2 removal is crucial to meeting the international climate goals set by the 2015 Paris Agreement. But it’s not enough just to cut CO2 emissions, to achieve net zero, it will also be necessary to remove the CO2 that two centuries of industrialisation have released into the environment. As a technology that removes more CO2 from the atmosphere than it releases – assuming it is powered by green electricity – DACS has the potential to play a key role in this process.

Key direct air capture facts

How does DACS work?

DACS could be described as a form of industrial photosynthesis. Just as plants use photosynthesis to convert sunlight and CO2 into sugar, DACS systems use electricity to remove CO2 from the atmosphere using fans and filters.

Air is drawn into the DACS system using an industrial scale fan. Liquid DACS systems pass the air through a chemical solution which removes the CO2 and returns the rest of the air back into the atmosphere.

Solid DACS systems captures CO2 on the surface of a filter covered in a chemical agent, where it then forms a compound. The new compound is heated, releasing the CO2 to be captured and separating it from the chemical agent, which can then be recycled.

The captured CO2 can then be compressed under very high pressure and pumped via pipelines into deep geological formations. This permanent storage process is known as ‘sequestration’.

Alternatively, the CO2 can be pumped under low pressure for immediate use in commercial processes, such as carbonating drinks or cement manufacturing.

A 2021 study by the Coalition for Negative Emissions shows that DACS could provide at least 1Gt of sustainable negative emissions by 2025

DACS fast facts

What role can DACS play in decarbonisation?

CO2 is in the air at the same concentration everywhere in the world. This means that DACS plants can be located anywhere, unlike carbon capture systems that remove CO2 from industrial processes at source.

There are 15 DACS plants currently in operation worldwide – Climeworks operates three in Switzerland, Iceland and Italy. Together, these small-scale plants capture approximately 9,000 tonnes of CO2 per annum. The first large-scale plant, currently being developed in the Permian Basin, Texas, is expected to capture 1,000,000 tonnes (one megatonne) per annum when it becomes operational in 2025.

At just 0.04%, the concentration of CO2 in the atmosphere is very dilute which makes removing and storing it a challenge. This means that DACS costs significantly more than some other CO2 capture technologies – between $200 and $600 (£156-468) per metric tonne. The process also requires large amounts of energy, which adds to the demand for electricity.

However, DACS has the potential to become an important piece in the jigsaw of CO2 removal technologies and techniques that includes nature-based solutions such as planting forests, along with bioenergy with carbon capture and storage (BECCS), soil sequestration and ‘blue carbon’ marine initiatives.

Go deeper

Button: What is bioenergy with carbon capture and storage (BECCS)?