Drax posts 2017 earnings amid biomass conversion
27 February Drax posted its 2017 numbers showing growth in energy output and earnings from renewable energy tariffs.
Energy output was up to 20 TWh in 2017 from 19.6 TWh in 2016, with 65% of this energy coming from renewable biomass. Earnings from Renewable Obligation Certificates totalled £626.7 million and those from the Contracts for Difference totalled £248.2 million, both of these numbers represent an increase from the previous year.
Drax’s overall profits were down, however, due to one-off costs related to its acquisition of Opus Energy and depreciation of its coal-related assets.
The company anticipates increased biomass self-supply through the acquisition of Opus and the commissioning of a third biomass pellet plant, LaSalle Bioenergy. Pellet production was up 35% in 2017 compared with 2016.
Historically, Drax was known for running the UK’s largest coal-fired power station, the company is now in the process of converting its operations to biomass ahead of the country’s 2025 deadline to phase-out coal.