Drax in the black
14 Mar 2007
London -- Drax Group plc has set up a £67-million warchest to help it reach a target of producing 10% of its output from renewable fuels by 2009. The investment fund is in addition to a recently announced £100-million turbine upgrade project, which is being carried out at its Selby coal-fired station by Siemens.
The company expects these investments together to save over three million tonnes of CO2 emissions each year, equalling the output of around 700 wind turbines, according to Dorothy Thompson, chief executive of the UK power generator.
Drax last year delivered a strong operating and trading performance, said Thompson. Earnings [EBITDA] rose 144% to £583 million on sales of £1387 million -- almost 50% higher than the previous year, according to its 2006 preliminary results statement.
“These results and our achievements in 2006 reflect the benefit from our strategy of delivering excellence in plant operations and trading performance; enhancing and diversifying the business, with a focus on fuel optionality and carbon abatement; and ensuring we have the appropriate financial and human resources. This strategy will continue in 2007,” said the CEO.
“We firmly believe that we have an important part to play in the UK's transition towards a low carbon economy whilst, at the same time, delivering reliable supplies of electricity,” Thompson added in the 8 March statement.
According to Thompson, Drax’s production strategy for 2006 focused on targeted improvements in plant operation and developing and executing projects to improve the operating efficiency and environmental performance.
The company reported an improved operating performance over the 12 months including during the critical winter period. This, it said, has led to the high availability of all six units at the Drax Power Station.
The performance, claimed Thompson, “places us as the industry leader for coal-fired plant by a clear margin - we achieved 90% compared to an average of 71% for the remainder of the sector - confirming the competitiveness and reliability of our operations.”
