Call to cut UK subsidies as Drax power station profits nearly double

theguardian.com:

Ministers are under pressure to cut subsidies to the operator of Britain’s biggest power station after it reported an 84% increase in annual profits, helped by high electricity prices.

Drax, the power generator which owns the eponymous plant in North Yorkshire, posted underlying profits of £731m for 2022, up from £398m a year earlier.

The company also increased its dividend, by 11.7% to 21p a share – an £84m payout to shareholders.

Drax, which has faced criticism over its use of biomass, has benefited from soaring power prices over the last year. Electricity prices are linked to wholesale gas costs, which have risen sharply since the Russian invasion of Ukraine.

Will Gardiner, the chief executive, said: “Drax delivered a strong performance in 2022, and played a significant role in ensuring security of supply during a challenging year for the UK’s energy system.”

Drax supplies up to 6% of the UK’s electricity, and is seen as a reliable source of electricity when weather conditions preclude significant wind and solar power generation.

Climate campaigners have accused Drax of greenwashing, arguing its biomass operations, which burn wood pellets to produce electricity, are far from green and can even increase the CO2 emissions driving the climate crisis.

Most of the wood is imported from North America. Former energy secretary Kwasi Kwarteng called its business model “not sustainable”.

Drax was the subject of a BBC Panorama investigation over alleged forest destruction and has also been accused of “environmental racism”.

Thinktank Ember said Drax had earned £893m in government subsidies in 2021, up from £832m in 2020. Analysis said that from 2012 until 2027, when the support runs out, Drax will have collected more than £11bn in