Tag: sustainability

Better forest management 

One of the most interesting outcomes of the recent analysis from the UK’s Forest Research (FR) agency on the Carbon Impact of Biomass (CIB) is the call for regulation to ensure better forest management and appropriate utilisation of materials.

The research was commissioned by the European Climate Foundation (ECF) to follow up FR’s mighty tome from 2015 of the same name.

This new piece of work essentially aims to clarify the findings of the initial research with supplementary analysis to address 3 key areas:

  1. A comparison of scenarios that may give relatively higher or lower GHG reductions — in simple terms, providing examples of both good and bad biomass.
  2. Based on the above, the report “provides a statement of the risks associated with EU bioenergy policy, both with and without specific measures to ensure sustainable supply.”
  3. It then goes on to “provide a practical set of sustainability criteria to ensure that those bio feedstocks used to meet EU bioenergy goals deliver GHG reductions”.

Not surprisingly, the report finds that unconstrained and unregulated use of biomass could lead to poor GHG emission results, even net emissions rather than removals. This, again, is a no-brainer. No reasonably minded person, even the most ardent bio-energy advocate, would suggest that biomass use should be unconstrained and unregulated.

There are plenty of obvious scenarios where biomass use would be bad, but that doesn’t mean that ANY use of biomass is bad. Thankfully this analysis takes a balanced view and identifies a number of scenarios where the use of biomass delivers substantial GHG emission reductions.

The report identifies the use of forest and industrial residues and small/early thinnings as delivering a significant decrease in GHG emissions, this is characterised as “good biomass” — around 75% of Drax’s 2017 feedstock falls into these feedstock categories (including some waste materials).

The remainder of Drax’s 2017 feedstock was made up of low grade roundwood produced as a bi-product of harvesting for saw-timber production. This feedstock was not specifically modelled in the analysis, but the report concludes that biomass users should: Strongly favour the supply of forest bioenergy as a by-product of wood harvesting for the supply of long-lived material wood products. The low grade roundwood used by Drax falls into this category.

Among the more obvious suggested requirements are that biomass should not cause deforestation and that biomass associated with ‘appropriate’ afforestation should be favoured. Agreed.

Another interesting recommendation is that biomass should be associated with supply regions where the forest growing stock is being preserved or increased, improving growth rates and productivity. Drax absolutely supports this view and we have talked for some time about the importance of healthy market demand to generate investment in forest management, encourage thinning and tree improvement.

Timber markets in the US South have lead to a doubling of the forest inventory over the last 70 years. These markets also provide jobs and help communities and ensure that forests stay as forest rather than being converted to other land uses.

The importance of thinning, as a silvicultural tool to improve the quality of the final crop and increase saw-timber production, is recognised by Forest Research. This is an import step in accepting that some biomass in the form of small whole trees can be very beneficial for the forest and carbon stock but also in displacing fossil fuel emissions.

The forest resource of the US South is massive, it stretches for more than a thousand miles from the coast of the Carolinas to the edge of West Texas, a forest area of 83 million ha (that’s more than 3 times the size of the UK). Given that a wood processing mill typically has a catchment area of around a 40–50-mile radius, imagine the number of markets required for low grade material to service that entire forest resource!

So, what happens when there isn’t a market near your forest, or the markets close? Over the last 20 years more than 30 million tonnes of annual demand for low grade timber — thinnings and pulpwood — has been lost from the market in the US South as the paper and board mills struggled after the recession. What happens to the forest owner? They stop harvesting, stop thinning, stop managing their forest. And that reduces the rate of growth, reduces carbon sequestration and reduces the quantity of saw-timber that can be produced in the future. Recognising that biomass has provided essential markets for forest owners of the US South, and directly contributed to better forest management is a really important step.

The CIB report talks about different types of biomass feedstock like stumps, which Drax does not use. Conversely the report also identifies good sources of biomass which should be used such as post-consumer waste, which Drax agrees would be better utilised for energy where possible, rather than land fill. It also shows that industrial processing residues that would otherwise be wasted and forest residues that would be burnt on site or left to rot would deliver carbon savings when used by facilities like Drax.

All of these criteria are similar to those outlined in the 7 principles of sustainable biomass that Drax has suggested should be followed.

Among the other recommendations which echo Drax’s thinking are that biomass should not use saw-timber or displace material wood markets, the scale should be appropriate to the long term sustainable yield potential of the forest — it should be noted that harvesting levels in the US South are currently only at around 57% of the total annual growth.

Counterfactual modelling, like that used in this report, cannot take account of all real-world variables and must be based on generic assumptions so should not be used in isolation, but this report makes a very useful contribution to a complex debate.

It is possible to broadly define good and bad biomass and to look at fibre baskets like the US south and see a substantial surplus of sustainable wood fibre being harvested a rate far below the sustainable yield potential.

Drax is currently working with the authors of this report, and others in the academic world, to develop the thinking on forest carbon issues and to ensure that all biomass use is sustainable and achieves genuine GHG emission reductions.

Discover the steps we take to ensure our wood pellet supply chain is better for our forests, our planet and our future — visit ForestScope

Sustainability reporting 2017

Sustainability information

Our Approach

Through our integrated value chain and flexible lower-carbon energy proposition … [Read more]


Achieve together with our people

We are nothing without our people and we take our commitment to provide a safe and healthy workplace … [Read more]

Drax Group sustainability team


Deliver for our customers

We focus relentlessly on improving our service and developing stronger relationships with our customers … [Read more]


A lower-carbon company

We are committed to enabling a low-carbon future by moving away from coal … [Read more]


Responsible sourcing

Our commitment to sourcing natural resources responsibly is underpinned by our sustainability policy … [Read more]


Reduce our environmental impact

Our responsibility for the environment as a major power supplier goes beyond reducing carbon dioxide … [Read more]


Positive social impact

Our contribution to the community takes many forms, from our direct role in areas … [Read more]


Sustainability case studies

Building a sustainable business

The boundaries between users, suppliers and generators are blurring, writes CEO Will Gardiner … [Read more].


The sustainable development goals

Improved performance has guided our business purpose for over four decades … [Read more]


Commitment to the UNGC

Reporting on the 10 principles of the UN Global Compact … [Read more]


Drax Biomass invests in greenhouse gas efficiencies

Truck dumps, a new train line and use of sawmill residues are helping our own biomass producer … [Read more].


Gamlingay community turbine

Opus Energy works with thousands of renewable electricity generators. Find out more in this purchase power agreement … [Read more]


Partnering to build a Northern Powerhouse

We are passionate about supporting the economy of the North of England … [Read more]


Customer service excellence

Excellent customer service is at the heart of our business … [Read more]


Collaborating for biodiversity protection and enhancement

Drax is committed to protecting biodiversity and playing an active role in habitat enhancement … [Read more]


Drax Biomass creates value in the United States

In many US States, including those in which Drax Biomass operates, there is a system of local taxation … [Read more]


American Tree Farm

The oldest sustainable family woodland system in the US … [Read more]


People strategy

We continue to strengthen, develop and deliver our people strategy across the Group … [Read more]


Listening to local communities

We strive to make a positive impact on local communities to ensure we understand the potential impacts … [Read more]


The Sustainable Biomass Program

The Sustainable Biomass Program’s (SBP) vision is an economically, environmentally and socially sustainable … [Read more]


Working with our suppliers

Working with Pinewells, a supplier of sustainable wood pellets in Portugal … [Read more]


The Bettercoal initiative

Ensuring industry respects people’s rights and makes a positive contribution to the social and economic … [Read more]


Restoring Brickmakers’ Wood

Haven Power employees have worked with the Eden-Rose Coppice Trust to help transform a woodland … [Read more]

Building a sustainable business

The UK energy sector is changing rapidly. The boundaries between users, suppliers and generators are blurring as energy users are choosing to generate their own energy and are managing their energy use more proactively while, conversely, generators are increasingly seeing users as potential sources of generation and providers of demand management.

“The UK is undergoing an unprecedented energy revolution with electricity at its heart – a transition to a low-carbon society requiring new energy solutions for power generation, heating, transport and the wider economy”

In that context, our Group’s purpose is to help change the way energy is generated, supplied and used for a better future. This means that sustainability, in its broadest sense, must be at the very core of what we do. Successful delivery of our purpose depends on all our people, across all our businesses, doing the right thing, every day. With the right products and services, we can go even further and help our customers make the right, sustainable energy choices.

As our businesses transform and we embrace a larger customer base, different generation technologies and operate internationally, the range of sustainability issues we face is widening and becoming more complex. At the same time, the range of stakeholders looking to Drax for responsible leadership on sustainability is increasing. The need for transparency is greater than ever, so our website’s sustainability section provides a comprehensive insight into the Group’s environmental, social and governance management and performance during 2017.

Some of the highlights include:

  • Carbon reduction: I am pleased that, in 2017, the proportion of our energy generation from renewable sources remained high. 65% of our generation during the year came from sustainable biomass and accounted for 15% of the country’s overall renewable generation. We maintained our rigorous and robust approach to ensure that we only ever use biomass that is sustainably produced and legally sourced.
  • People: Another key achievement was the roll out of our people strategy to 2020 – One Drax – which focuses on talent to deliver on our strategic and operational objectives.
  • Safety: The health and safety of all our employees and contractors is of paramount importance to Drax. While the Group’s safety incident rate remained on target in 2017, the fire at our biomass rail unloading facilities in December did cause an outage, with disruption lasting into 2018. It highlighted once again that the risks of generating using biomass must be mitigated through robust safety procedures and a risk-based plant investment and maintenance programme. Safety therefore remains at the centre of our operational philosophy and we are determined to do even better.
  • Customers: Our business to business (B2B) Energy Supply business received recognition for their dedication to customer service. Opus Energy won “Utilities Provider of the Year” at the British Small Business Awards 2017.

We initiated a process which would allow us to participate in the United Nations Global Compact (UNGC). We are committed to the initiative and its ten principles, which align with our culture of doing the right thing.

Our website’s sustainability section also sets out our commitment to achieving the United Nations’ Sustainable Development Goals through our operations, the services we deliver to our customers and in partnership with others.

Global ambitions and goals are important, but so too are our ambitions for our local and regional communities. As such, we have played a key role in the UK Northern Powerhouse Partnership, initiatives such as POWERful Women and a comprehensive programme of stakeholder engagement.

“Sustainability, in its broadest sense, must be at the very core of what we do”

Finally, I do not believe any organisation, however well intentioned, can get its commitment to sustainability perfect on its own and I am very keen for Drax to learn from people reading our website’s sustainability section. It sets out what we see as our achievements and aspects in which we believe we need to do better. I would like to invite any stakeholder with an interest to comment on what we’re doing and help us improve where we can. Feedback can be submitted at Contact us or via our Twitter account or Facebook page.

Read the Chief Executive’s Review in the Drax Group plc annual report and accounts

The sustainable development goals

In 2015, the United Nations launched 17 Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all by 2030. At Drax, improved performance has guided our business purpose for over four decades. We are committed to play our part in achieving the UN SDGs through our operations, the services we deliver to our customers and in partnership with others.

Drax Group has the most significant impact on the Global Goals listed below:

Affordable and clean energy

We provide 6% of the UK’s electricity and play a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low-carbon future. In 2017, 65% of the electricity we produced came from biomass, rather than coal. Our B2B Energy Supply businesses encourage customers to be more sustainable, including through the provision of reliable, renewable electricity at no premium compared to fossil fuel-generated electricity.

Customers

Low Carbon

Decent work and economic growth

We directly employ over 2,500 people in the United Kingdom and United States and their health, safety and wellbeing remains our highest priority. Our B2B Energy Supply business offers energy solutions and value-added services to industrial, corporate and small business customers across the UK.

Society

Industry, innovation and infrastructure

We develop innovative energy solutions to enable the flexible generation and lower-carbon energy supply needed for a low-carbon future. We also innovate to improve the efficiency of our operations and increase our production capacity, notably in our biomass supply chain. Our B2B Energy Supply business offers “intelligent sustainability” and innovative products and services to our customers.

Customers

Low Carbon

Climate action

Our electricity generation activities are a source of carbon emissions. We are committed to helping a low-carbon future by moving away from coal and towards renewable and cleaner fuels, including biomass electricity generation and our planned rapid-response gas plants. We also help our business customers to be more sustainable through the supply of renewable electricity.

Low Carbon

Life on land

We source sustainable biomass for our electricity generation activities and engage proactively with our supply chain to ensure that the forests we source from are responsibly managed. We work closely with our suppliers and through tough screening and audits ensure that we never cause deforestation, forest decline or source from areas officially protected from forestry activities or where endangered species may be harmed.

Low Carbon

Sourcing

Environment

Partnerships for the goals

We engage with stakeholders regularly and build relationships with partners to raise our standards and maximise what can be achieved. Our collaborations align closely with our business, purpose and strategy.

Stakeholder Engagement

Society

Commitment to the UNGC

In 2017, we initiated a process which will allow us to participate in the United Nations Global Compact (UNGC) a global sustainability initiative and we will evidence progress next year. We made progress in preparing for participation outlined in the following sections:

Human rights

We seek to safeguard fundamental human rights for our employees, contractors and anyone that is affected by our business. We ensure that our suppliers apply high standards to protect human rights.

Modern Slavery Statement

Labour

We have policies and standards in place to safeguard our employees and contractors. We respect our employees’ rights in areas such as freedom of association and collective bargaining and we do not tolerate forced, compulsory or child labour. We are committed to providing a safe and healthy workplace for all our people and we strive to prevent discrimination and promote diversity in our workforce.

People

Environment

As a generator and supplier of electricity, we take our responsibility to protect the environment very seriously. We have transformed our generation business and are seeking to further reduce our environmental impact. We focus on reducing our emissions to air, discharges to water, disposal of waste, and on protecting biodiversity and using natural resources responsibly. We have invested heavily in lower-carbon technology as we continue to transition away from coal to renewable and lower-carbon fuels.

Customers

Low Carbon

Environment

Anti-corruption

We do not tolerate any forms of bribery, corruption or improper business conduct. Our “Doing the Right Thing” framework sets out the ethical principles our people must uphold, which is supported by the Group corporate crime policy. Our strict ethical business principles apply to all employees and contractors and we expect the same high standards from anyone we do business with.

Ethics and Integrity

Drax Biomass invests in greenhouse gas efficiencies

close-up of truck raising and lowering

We have increased the capacity at Drax Biomass Amite and Morehouse pellet plants to increase capacity and made them more greenhouse gas (GHG) efficient. Central to the projects was the addition of storage silos and handling equipment to allow increased use of dry shavings and other mill residuals. The developments included the addition of an extra truck dump at each facility to allow delivery of increased volumes of these feedstocks.

Drax biomass pellet trucks

Use of mill residuals and dry shavings reduces the energy required to make a pellet, as such material does not need to be de-barked, chipped and re-sized in the same way as roundwood. Some of the material has a low moisture content and is therefore able to enter the process after the dryer, which effectively increases the capacity of each plant. This drives down the average GHG emission per tonne of pellets produced. A key measure of this is the KWh of electricity per tonne of pellets, and we saw this reduce by about 10% in the final months of the year compared with the start of the year, with further savings anticipated.

LaSalle BioEnergy in Louisiana

At LaSalle, a significant amount of our investment is going into allowing pellets to be transported to the port by rail, rather than truck. For the 250 km trip to Baton Rouge, a significant carbon saving compared to trucks will be achieved when LaSalle reaches its capacity of 450,000 tonnes per year. Moving pellets by rail should start in the next year.

Gamlingay community turbine

Gamlingay Community Turbine is situated just outside the village of Gamlingay, Cambridgeshire. It is an enterprise privately funded by local residents and businesses. The village installed the turbine for three reasons: to reduce its carbon footprint; to raise money for the community by selling the turbine’s power; and to create a good investment opportunity for individuals and businesses in the area.

Opus Energy offers to purchase power at market-leading prices. The team behind the Community Turbine were seeking a high level of customer service, which is why they chose to sell their power to Opus Energy. Mr Brettle, a director of the project, comments:

“It really came down to how easy it was to talk to Opus Energy. We’re all people with day jobs so don’t have much spare time, and we’re certainly not experts in this area! Opus Energy helped us cut through the jargon and gave us confidence that nothing horrible will happen because we’d missed some technical detail. They made the entire process simple from start to finish.”

Gamlingay Community Turbine Ltd will give 10% of the net income, after all running costs, to a community fund. This will enable them to create a long-term income stream for the local area which will be used to support environmentally friendly projects for the benefit of the whole community.

Partnering to build a Northern Powerhouse

As a company with a strong Yorkshire heritage, we are passionate about supporting the economy of the North of England and promoting the role of the energy sector within it.

That is why we play an active role in the Northern Powerhouse Programme and regularly meet with regional bodies such as Transport for the North and Local Enterprise Partnerships.

We are also represented on the board of the Northern Powerhouse Partnership, a group of leading northern businesses and civic leaders committed to maximising the economic potential of the North.

As part of our work with the Partnership, the CEO of Drax Power, Andy Koss, chaired five workshops focusing on the opportunities and challenges facing the energy sector in the North. Over 100 people attended the workshops in York, Hull, Warrington, Lancaster and Carlisle, which brought together industry experts, local authorities and community groups.

The workshops informed a report published by the Partnership in September 2017, Powerhouse 2050: Transforming the North, which recommended several policy interventions to address the North’s productivity gap and create an extra 850,000 jobs by 2050.