Drax Group plc on July 26 reported wood pellet production volumes and margins were both up during the first half of 2024. The company also reported progress with bioenergy with carbon capture and storage (BECSS) projects in both the U.K. and abroad.&nbsp;Drax’s pellet division produced 2 million metric tons of wood pellets during the first half of this year, up from 1.9 million metric tons during the same period of 2023. Margins were also improved, with adjusted EBITDA of £65 million, up from £43 million during the first half of last year. The company said increased production supported both U.K. power generation and sales to third parties.&nbsp;Work also continues to develop new wood pellet production capacity, with a 130,000-metric-ton-per-year expansion project at the Drax’s pellet plant in Aliceville, Alabama, commissioned during the first half of this year. Drax is also working to develop the proposed 450,000-metric-ton-per-year pellet plant in Longview, Washington. The company said permitting efforts are underway.Drax previously set a goal to have 8 million metric tons of annual pellet production capacity in place by 2027. That goal will require the company to develop 2 million tons of new biomass pellet production capacity to supplement existing capacity. In addition to producing wood pellets to fuel Drax Power Station in the U.K., the company is also developing a pipeline of new contracts for biomass supply into new markets and uses, including sustainable aviation fuel (SAF).&nbsp;According to the half year report, Drax Power Station generated more than 4% of the U.K.’s electricity and 9% of its renewable power between April 2023 and March 2024. During this period, it produced on average 16% of the U.K.'s renewable power at times of peak demand and on certain days over 60%.The report also addresses Drax’s BECSS initiatives. In the U.K., the company said it continues to develop an option for BECCS at Drax Power Station. That project could capture up to 8 million metric tons of carbon dioxide annually, but development will depend on timely government support mechanisms.&nbsp;In the Southwest U.S., Drax said it has selected a first site for a potential new-build BECCS plant that would include both power and carbon capture components. According to Drax, investment in the proposed project will be subject to long-term carbon dioxide removal offtake agreements with corporate counterparties and power purchase agreements for 24/7 renewable power. The company said discussions with prospective counterparties are currently underway.A full copy of Drax’s half year report is available on the company’s <a href="https://polaris.brighterir.com/public/drax_group/news/rns/story/xpdd03x">website</a>.

2024-07-30 - Drax reports increased pellet production, improved margins (Biomass Magazine)

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Drax Group plc on July 26 reported wood pellet production volumes and margins were both up during the first half of 2024. The company also reported progress with BECCS projects in both the U.K. and abroad. 

Drax reports increased pellet production, improved margins

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