Drax Group plc highlighted the progress made toward its goal of increasing wood pellet production. The goal is to reach 8 million metric tons by 2030 while reducing production costs in its 2021 financial report.
“2021 was a transformational year for Drax as we became the world’s leading sustainable biomass generation and supply company. At the same time, we continued to invest in delivering positive outcomes for climate, nature and people,” said Will Gardiner, CEO of Drax.
“Over the past ten years, Drax has invested more than £2 billion in renewable energy. In addition, the company has plans to invest a further £3 billion this decade to support the global transition to a low-carbon economy. Our investment has reduced our power generation emissions by over 95% and we are the UK’s largest renewable energy producer by output. We are proud to be one of the least carbon-intensive power generators in Europe. Which is a major transformation after having been the largest coal-fired power station in Western Europe.”
“We are well advanced in our plans for bioenergy with carbon capture and storage (BECCS) in the UK and globally,” Gardiner added. “By 2030 we aim to produce 12 million [metric tons] of negative emissions and lead the world in delivering a critical technology that scientists agree is key to achieving the global transition to net zero.”
Increasing pellet production capacity
The financial report discusses several steps Drax took last year to increase its wood pellet production capacity, including the acquisition of Canadian pellet producer Pinnacle Renewable Energy. Following the acquisition, Drax now has 17 pellet plants and developments. These in turn comprise three large fiber baskets with a combined capacity of approximately 5 million metric tons per year.
The company produced 3.1 million metric tons of wood pellets in 2021, up from 1.5 million metric tons in 2020. Total cost of production was $143/ton, down 7% compared to the $153/ton reported for 2020.
Drax is currently the UK’s largest renewable energy generator by output, accounting for 12% of the country’s renewable electricity production. The financial report describes several cost reductions underway to support biomass power production at the Drax power station from 2027 onwards.
These include a third biomass turbine upgrade and tests to expand the range of lower cost sustainable biomass, with a blend of up to 35% achieved in tests of one unit.
Source: Biomass Magazine (2022)