Drax seeks to double pellet production, biomass sales by 2030

UK power producer Drax Group Plc (LON:DRX) will aim to double its pellet production and biomass sales by the end of the decade, while spending about GBP 3 billion (USD 4bn/EUR 3.53bn) on growth opportunities in the period 2022-2030.

The group’s goal is to increase pellet production to 8 million tonnes per year by 2030 from around 4 million tonnes now. Annual biomass pellet sales to third parties are also seen to double to 4 million tonnes from 2 million tonnes.

"We aim to double our sustainable biomass production capacity by 2030 - creating opportunities to double our sales to Asia and Europe, where demand for biomass is increasing as countries transition away from coal,” said CEO Will Gardiner.

As per the group’s plans for bioenergy with carbon capture and storage (BECCS) at the Drax Power Station, it has set a target of 8 million tonnes per year of negative carbon dioxide (CO2) emissions by 2030.

"Drax is now targeting 12 million tonnes of carbon removals each year by 2030 by using bioenergy with carbon capture and storage (BECCS). This includes the negative emissions we can deliver at Drax Power Station in the UK and through potential new-build BECCS projects in North America and Europe, supporting a new sector of the economy, which will create jobs, clean growth and exciting export opportunities," Gardiner added.

(GBP 1.0 = USD 1.332/EUR 1.177)

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