Drax Group plc on Aug. 28 announced that the U.K. Finance Conduct Authority has begun an investigation into certain historical statements regarding the company's biomass sourcing. The FCA confirmed the announcement but did not provide additional details.&nbsp;A statement issued by Drax indicates the company was notified on Aug. 26 that the FCA had opened the investigation. The inquiry covers the period from January 2022 through march 2024 “relating to certain historical statements regarding Drax’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 annual reports with the Listing Rules and Disclosure Guidance and Transparency Rules,” according to Drax. The company said it will cooperate with the FCA as part of their investigation.The FCA is an independent public body in the U.K. that regulates financial service firms and markets to ensure they operate honesty and fairly. The agency aims to protect consumers, enhance market integrity and promote competition.&nbsp;The Listing Rules referenced in Drax’s announcement refer to rules governing how companies can list their securities on the U.K. market, while the Disclosure Guidance and Transparency Rules focus on ongoing obligations related to market transparency. &nbsp;Drax burns wood pellet fuel to generate baseload power at Drax Power Station, a former coal-fired facility. In its recently released half year financial report, the company noted that Drax Power Station produced an average of 19% of the U.K.’s renewable power at times of peak demand between April 2024 and March 2025. On certain days, that figure jumped to more than 50%.&nbsp;Drax has faced numerous criticisms and several investigations regarding the sustainability of its biomass over the years. This includes a <a href="https://biomassmagazine.com/articles/ofgem-publishes-supplemental-statement-on-drax-investigation">recent investigation by Great Britain’s Office of Gas and Electricity Markets (Ofgem)</a>, an independent energy regulator. In March 2025, Ofgem issued a statement providing additional details of its investigation into Drax and how reporting requirements under the U.K. Renewables Obligation (RO) apply. The supplemental statement is related to Ofgem’s August 2024&nbsp;<a href="https://biomassmagazine.com/articles/ofgems-drax-investigation-finds-no-harm-to-consumers-drax-agrees-to-pay-25m-into-voluntary-redress-fund">announcement</a>&nbsp;that its investigation into Drax’ biomass profiling data did not find any &nbsp;evidence that the company’s biomass is not sustainable or that Drax had been issued with Renewable Obligation Certificates (ROCs) incorrectly.The company has repeatedly confirmed its biomass is sustainably sourced and earlier this <a href="https://biomassmagazine.com/articles/drax-launches-enhanced-approach-to-global-sustainability">year launched an enhanced approach to deliver on its global sustainability targets</a>. As part of the revamped approach, Drax developed a new sustainability framework in consultation with a wide range of stakeholders. According to the company, the plan includes 26 specific, measurable&nbsp;and time-bound targets which will govern the business’ approach, helping to further improve how it interacts with key issues such as emissions reduction, forestry, biodiversity, water efficiency and supporting local communities.Drax also announced its ambition to reach net zero across its value chain by the end of 2040. That plan includes steps aimed at decarbonizing the company’s supply chains to prioritize the low carbon delivery of biomass fiber to Drax Power Station and moving forward with renewable power sources for its pellet plants.

2025-08-28 - FCA opens investigation into Drax’s biomass sourcing disclosures (Biomass Magazine)

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Drax on Aug. 28 announced that the U.K. Finance Conduct Authority has begun an investigation into certain historical statements regarding the company’s biomass sourcing. The FCA confirmed the announcement but did not provide additional details. 

FCA opens investigation into Drax’s biomass sourcing disclosures

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