Tag: renewable energy

Drax’s Biggest Deal Marks its Next Transformation

31 July 2026

Opinion

Will Gardiner, Drax CEO

For much of the last century, the key question was where electricity would come from. Now, the energy transition is entering a new phase. Increasingly, the question is not where the power would come from but how we can make the system work better.

Britain is seeing record levels of renewable and intermittent generation, growing electricity demand, increasing electrification and the emergence of AI-driven infrastructure that will require substantial new sources of power. At the same time, the system must remain secure, resilient and affordable. No single technology can deliver security, affordability and decarbonisation alone. The system needs renewables, flexible generation and storage working together. And we need to make the most effective use of every asset on the system.

There is a huge opportunity for the UK to unlock further investment in the energy infrastructure needed while supporting growth across the country. But making that opportunity a reality will require government and industry to work closely together to remove barriers to investment, speed up project delivery and accelerate reform of the grid and connection process. It also means making better use of existing infrastructure and connection capacity to meet rising demand and maintain UK competitiveness.

As Britain’s electricity network becomes more dynamic and decentralised, value increasingly comes from connecting technologies together and ensuring they operate efficiently.

Our ambition is to be at the forefront of that evolution.

Today marks an important milestone for Drax in our strategy to do just that, as we complete the acquisition of Bluefield Solar Income Fund.

The transaction adds around 900MW of operational solar and wind assets, alongside a 2.9GW development pipeline including joint ventures, making it the largest acquisition in our company’s history.

This acquisition is not just another addition to our portfolio; it’s about transforming our business to deliver what the UK energy system needs. I have seen Drax change profoundly over the last decade. Each time, the reason has been the same- Britains energy system has changed, and Drax has changed with it. When Drax Power Station was built, Britain needed reliable, dispatchable power to support economic growth and an expanding industrial economy. As climate change became an increasingly urgent challenge, we transformed Western Europe’s largest coal fired power station into Britain’s largest single source of renewable electricity, helping deliver a significant reduction in the UK’s reliance on fossil fuels while maintaining security of supply.

I am proud of Drax’s history, but I’m even more excited about what is coming next.

We are building a portfolio that combines biomass, hydro, pumped storage, battery storage, flexible gas generation, solar power, wind and market optimisation capabilities.

Today’s acquisition is a critical milestone in that strategy. It adds a substantial portfolio of operational solar and wind assets and a significant development pipeline, strengthening our renewable generation business at a time when the country needs more clean power. Combined with our existing flexible generation and battery portfolio, these assets strengthen our ability to support the electricity system during periods of both high renewable output and high demand.

With BESS and OCGT development sites included, our renewable generation business and flexible generation assets combined will have a power capacity of over 3GW – larger than Drax Power Station’s 2.6GW for the first time.

Earlier this year, we also completed the acquisition of Flexitricity, reflecting our belief that technology, optimisation and market participation will become increasingly important components of a successful energy business.

The thread running through this announcement is not just the acquisition of new assets, but that Drax is building a more diverse business built for what Britain needs.

Today’s acquisition helps us build the kind of company that can meet the challenge of energy security, affordability and sustainability. The opportunity ahead is not simply to generate more electricity, but to deliver more value from every megawatt. That is the future of energy — and it is where Drax intends to lead.

Drax completes ‘transformational’ £548 million acquisition of solar and wind assets

News

Drax Group plc is pleased to announce that it has completed the acquisition of renewable energy company Bluefield Solar Income Fund Limited (BSIF). The deal is transformative for Drax, adding solar and wind assets to our generation portfolio for the first time.

The deal provides Drax with 0.9GW of operating and under construction solar and wind assets, as well as a gross development pipeline of 2.9GW which could be constructed across the next decade. When combined with Drax’s BESS and OCGT development sites, our renewable generation business and flexible generation assets will have a larger combined power capacity of over 3GW than Drax Power Station’s 2.6GW for the first time.

The acquisition will increase the role Drax plays in supporting the UK’s goals of strengthening energy security, keeping power affordable and accelerating decarbonisation. Drax expects the deal to be backed by strong cash generation from BSIF’s existing operational portfolio, disciplined capital investment and attractive returns for Drax shareholders.

Drax Group CEO, Will Gardiner, said: “This is a transformational moment for Drax. By adding solar and wind to our portfolio for the first time, we are broadening the role we can play in supporting the UK’s energy security and helping to decarbonise the power system.

“As demand for electricity grows, the UK will need more renewable power, alongside the flexible generation and system support needed to keep the grid secure. This acquisition strengthens our platform for growth and will help us deliver long-term value for our shareholders.

“We’re proud to have been at the heart of Britain’s energy system for sixty years, and we’re investing in and evolving our business now to ensure we continue to deliver what the country needs for decades to come.”

Demand for electricity in the UK is expected to grow significantly in the years ahead, driven by new technologies such as AI and data centres, as well as the electrification of transport and industry. Drax believes the addition of solar and wind assets will strengthen its ability to support UK energy security, help decarbonise the power system and create long-term value for the business.

ENDS

Notes to editors

On 1 June 2026, the boards of Bluefield Solar Income Fund and Drax announced that they had reached agreement on an all-cash acquisition of BSIF by Drax, subject to BSIF shareholder approval. Following shareholder approval and completion of the court hearing today, the acquisition has now been approved and is effective from 31 July 2026. 

Media contact

Aidan Kerr
E: [email protected]
T: 07849090368

About Drax

Drax’s purpose is to enable a zero carbon, lower cost energy future. Our strategic aims are to be a UK leader in flexible, renewable generation and a global leader in sustainable biomass pellet production.

Our operations

Drax owns and operates a portfolio of flexible, low-carbon and renewable UK power assets – biomass, hydro, solar, wind, pumped storage and OCGT generation – which provide power and system support services to the electricity grid.

We are the UK’s largest source of renewable power by output, and Drax Power Station is the UK’s largest single source of renewable electricity by output.

Through our pellet production facilities in North America, Drax is a leading integrated producer of sustainable biomass.

Drax supplies renewable electricity to UK industrial and commercial customers, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

Website: www.drax.com

How Wood Pellets Support Clean Energy Goals, Forests, and Communities

1 October 2025

Opinion

By Kyla Cheynet, Director of Sustainability, Drax

When we think of clean energy, solar panels and wind turbines often dominate the conversation, but as we work to enable a zero carbon, lower cost energy future, it’s going to take all clean energy industries working together. Biomass, in the form of wood pellets, has been quietly making a big impact by helping countries reduce carbon emissions, support sustainable forestry, and transition away from fossil fuels. 

What Are Wood Pellets? 

At Drax, we operate within the larger forest industry, making our wood pellets from sawmill residues and low-grade wood from the forest. Mill residuals come in the form of shavings, sawdust and chips, while material sourced from sustainable harvests comes from tree trunks, tops, and limbs which are too small or malformed to make sawtimber.  Wood that arrives in roundwood form is debarked and chipped on-site, with bark being used as fuel to dry the high-moisture chips and sawdust.  Once the fiber is dried it, is resized by “hammermills” into a very small particles which are then compressed under high pressure by “pellet mills” which cause the natural resins in the wood to bind together forming small wood pellets that look just like those used for pellet burning grills or home heating.  The wood pellets we produce are: 

  • Renewable: Sourced from sustainably managed forests and manufacturing residuals. 
  • Efficient: Low moisture content means high energy output. 
  • Easily transported: Pellets can be loaded on trucks, railcars, and ships with ease.  

Supporting Sustainable Forestry 

The forests that we source our biomass from are managed in accordance with best practices designed to support the health and growth of these forests over the long term.   We have strict criteria in place to ensure our fiber sourcing helps maintain or improve forest health, landscape-level carbon stocks, biodiversity, and forest-related values communities depend on.  

In the U.S. South, forest inventory has expanded rapidly in recent decades, largely due to improved forest management on private lands These vigorously growing forests are considered a wood basket to the world.  Active forest management is essential to maintaining the productivity and ecological value of these forests.  Thinning, an intermediate harvest aimed at reducing tree density, is essential to maintaining forest health. Thinning not only increases future sawtimber yields by allocating greater resources to “crop trees”, but also improves the forest’s resilience to pests, disease, and wildfire, all while enhancing understory plant diversity and wildlife habitat. 

Most trees removed during thinning operations are generally undersized or unsuitable for lumber, but they are ideal for producing wood pellets! In this way, the biomass market creates an incentive for managers to engage in practices that increase the health and vigor of forests on their land. 

Why Is This Important? 

At Drax, our mission is to help meet the world’s increasing demand for secure energy, sustainably. Sustainably sourced biomass plays an important role in supporting energy security as the world decarbonizes, displacing fossil fuels with renewable, dispatchable power that supports intermittent renewables like wind and solar.  

Biomass markets also bring business to rural communities. In addition to direct employment opportunities in manufacturing Drax’s operations supports hundreds of jobs throughout the larger forest industry in Mississippi. Drax pellet plants also create market opportunities for landowners hoping to generate a return on their forest investment.  Markets for low-grade biomass incentivize landowners to continue managing forests rather than converting or selling them off to other uses.  And we all benefit when forests remain forests!

To learn more about Drax’s impact in Gloster, Mississippi, visit www.drax.com/gloster  

Supporting a circular economy in the forests

16 June 2022

Opinion

Every year in British Columbia, millions of tonnes of waste wood – known in the industry as slash – is burned by the side of the road.

Land managers are required by law to dispose of this waste wood – that includes leftover tree limbs and tops, and wood that is rotten, diseased and already fire damaged – to reduce the risks of wildfires and the spread of disease and pests.

The smoke from these fires is choking surrounding communities – sometimes “smoking out entire valleys,” air quality meteorologist from BC’s Environment Ministry Trina Orchard recently told iNFOnews.ca.

It also impacts the broader environment, releasing some 3 million tonnes of CO2 a year into the atmosphere, according to some early estimates.

Slash pile in British Columbia

Landfilling this waste material from logging operations isn’t an option as it would emit methane – a greenhouse gas that is about 25 times more potent than CO2. So you can see why it ends up being burned.

In its Modernizing Forest Policy in BC, the government has already identified its intention to phase out the burning of this waste wood left over after harvesting operations and is working with suppliers and other companies to encourage the use of this fibre.

This is a very positive move as this material must come out of the forests to reduce the fuel load that can help wildfires grow and spread to the point where they can’t be controlled, let alone be extinguished.

The wildfire risk is real and growing. Each year more forests and land are destroyed by wildfire, impacting communities, nature, wildlife and the environment.

In the past two decades, wildfires burned two and a half times more land in BC than in the previous 50-year period. According to very early estimates, emissions from last year’s wildfires in the province released around 150 million tonnes of CO2 – equivalent to around 30 million cars on the road for a year.

Alan Knight at the log yard for Lavington Pellet Mill in British Columbia

During my recent trip to British Columbia in Canada, First Nations, foresters, academics, scientists and government officials all talked about the burning piles of waste wood left over after logging operations.

Rather than burning it, it would be far better, they say, to use more of this potential resource as a feedstock for pellets that can be used to generate renewable energy, while supporting local jobs across the forestry sector and helping bolster the resilience of Canada’s forests against wildfire.

I like this approach because it brings pragmatism and common sense to the debate over Canada’s forests from the very people who know the most about the landscape around them.

Burning it at the roadside is a waste of a resource that could be put to much better use in generating renewable electricity, displacing fossil fuels, and it highlights the positive role the bioenergy industry can play in enhancing the forests and supporting communities.

Drax is already using some of this waste wood – which I saw in the log yard for our Lavington Pellet mill in British Columbia. This waste wood comprises around 20% of our feedstock. The remaining 80% comes from sawmill residues like sawdust, chips and shavings.

Waste wood for pellets at Lavington Pellet Mill log yard

It’s clear to me that using this waste material that has little other use or market value to make our pellets is an invaluable opportunity to deliver real benefits for communities, jobs and the environment while supporting a sustainable circular economy in the forestry sector.