Drax upped wood pellet production to 3.9Mt last year

Drax increased its wood pellet production last year by 26 per cent compared to 2021 numbers, but noted delays at new plants and rail restrictions resulted in lower production than expected, the company reported in its year-end results.

Drax’s produced 3.9 million tonnes of pellets in 2022, and added 0.5 million tonnes of capacity from its U.S. plants in Demopolis, Leola and Russellville and the completed commissioning of its newly acquired Princeton, B.C., plant.

The company posted an adjusted EBITDA for its pellet production of £134 million for 2022, up 56 per cent from the £86 million reported in 2021.

“Drax delivered a strong performance in 2022, and played a significant role in ensuring security of supply during a challenging year for the UK’s energy system,” CEO Will Gardiner said in the release.

“Drax is a growing international business with strong cash returns which we are reinvesting to produce more renewable energy and deliver carbon removals while reducing our own carbon emissions. We aim to be at the heart of the energy transition, creating the jobs, renewable power and large-scale carbon removals that the world needs,” Gardiner said.

Read the company’s full-year report here.