Drax posts strong performance in Q1 2022, increased pellet production

UK-based Drax Group reported a strong system support performance during the first three months of 2022, noting increase in value of contracted power prices 2022-2024, 99 per cent of its generation from renewables – sustainable biomass, hydro and pumped storage, and 400,000 tonnes of new biomass pellet production capacity commissioned in U.S. southeast.

Drax completed the commissioning of its 360,000-tonne plant at Demopolis, Ala., and its 40,000-tonne satellite plant in Leola, Ark., in April. A second 40,000-tonne satellite plant in Russellville, Ark., is under construction.

“In the first quarter of 2022 we delivered a strong system support performance as our reliable, renewable electricity continued to support UK energy security and helped to keep the lights on for millions of British homes and businesses,” Drax CEO Will Gardiner said in the report.

“We advanced our strategy to increase biomass pellet production, with another 400,000 tonnes of capacity commissioned from two new pellet plants in the US. We also progressed the engineering design work for our UK BECCS project, which will deliver negative emissions for the UK and pioneer BECCS technology at scale. BECCS is a vital carbon removals technology that the UN’s IPCC says is needed globally to achieve net zero.

“With the right government support, Drax is ready to invest £3 billion this decade in delivering vital renewable energy technologies including BECCS, a carbon removal technology that is cost-effective but also the only one that generates reliable, renewable electricity while removing millions of tonnes of CO2 from the atmosphere.”

Read the company’s full report here.