Drax was in the past best known for being the UK's largest coal-fired power station. But with the writing on the wall for coal-fired generation, Drax has taken a brave leap towards biomass in recent years. Last year, and after much uncertainty, those biomass ambitions finally became a reality and Drax's future in a low-carbon world looked assured.
- ● Uncertainty over government treatment of biomass
- ● Threat of EU interference
- ● Questions over biomass's green credentials
- ● Recent disappointing trading update
- ● Full rating and only modest yield
- ● Conversion from coal to biomass on track
- ● Strong balance sheet
The group's first unit was converted to biomass in April 2013 and its operating performance was encouraging with an efficiency level almost up there with coal. Buoyed by this promising start and UK government backing for renewables, Drax confirmed plans for its second and third units to be converted to biomass in 2015. Drax's transformation story won fans in the City and the shares soared 43 per cent last year.