Committed to the world’s energy transition
Drax Group plc Annual report and accounts 2023
Our purpose: to enable a zero carbon, lower cost, energy future
Through our strategic pillars, that are aligned to net zero targets, we are delivering on our promise. This is how we are creating impact:
To be a leader in carbon removals
To be a global leader in sustainable biomass pellets
To be a UK leader in dispatchable, renewable generation
We are creating opportunities for growth and attractive returns aligned to global decarbonisation efforts.
As many countries seek to decarbonise in a cost-effective manner, while protecting energy security and delivering a Just Transition, our purpose – to enable a zero carbon, lower cost energy future – is well aligned with these competing priorities.
The world must act now to address the climate crisis if we are to limit global warming to 1.5C above pre-industrial levels. We need more renewable energy, and more flexible energy systems to make the best use of intermittent renewables.
Crucially, we also need carbon removal technologies, like BECCS, to remove carbon from the atmosphere.
Download CEO’s Review
Will Gardiner, CEO
Andrea Bertone, Chair
Enabling a secure and sustainable future, together with you.
Over the last 15 years Drax has transitioned from a UK-based coal-fired power generator to an international renewable energy company. With the development of carbon removal opportunities utilising BECCS technology, I believe that Drax is at the forefront of the energy transition, and I am excited to be a part of that.
Download Chair’s Statement
Financial/ESG Highlights
£8,125m
Total revenue
(2022: £7,775m)
£1,214m
Adjusted EBITDA (excluding EGL) (1) (3)
(2022: £731m)
142.8 pence
Total basic earnings per share
(2022: 21.3 pence)
£908m
Total operating profit
(2022: £146m)
23.1 pence
Dividend per share
(2022: 21.0 pence)
£1,111m
Cash generated from operations
(2022: £320m)
8%
Percentage of total UK renewable electricity generated
(2022: 11%)
£1,084m
Net debt (1) (2)
2022: £1,206m)
0.38
Total recordable incident rate
(2022: 0.44)
39 tCO2e/GWh
Group carbon intensity
(2022: 49 tCO2e/GWh)
486 ktCO2e
Group carbon emissions Scope 1 and 2 (location-based)
(2022: 669 ktCO2e)
3,534 ktCO2e
Group carbon emissions Scope 3
(2022: 3,123 ktCO2e)
Our role in energy security, tackling climate change, and a Just Transition
Energy security
8%
In 2023 across its pumped storage, hydro and biomass assets, Drax provided 8% of the UK’s renewable power
The Global Role of BECCS and Carbon Dioxide Removals (CDRs)
9.5bn
Up to 9.5bn tonnes of carbon dioxide removals, via BECCS, could be required annually by 2050.
A Just Transition
The global energy market continued to see a transition to cleaner and more sustainable energy sources, advancements in technology, and a growing emphasis on digitalisation. Environmental concerns, enhancing energy security, and meeting the evolving demands of a changing world remain high priorities for governments across the world.
