Drax operates on the stock exchange, and London requires that coal-fired power plants continue to operate

(Il Sole 24 Ore Radiocor) Drax won the support of investors on the London Stock Exchange, after it announced that it would extend the activity of two coal-fired plants at the request of the British government and thus raised the targets.

Drax said that “in response to the increasing pressure on European gas markets and concerns about the security of electricity supply this winter in the UK, the UK government has asked the owners of coal-based generation companies, including Drax, to cooperate temporarily to expand the activity of these plants”. Therefore, “at the request of the Government, Drax has reached an agreement with the National Grid, as the operator of the electricity system, under which two coal-fired production units at the Drax Power Plant will remain in operation to provide service in the region. The winter needs event for the British power system from October 2022 to March 2023 » The two plants will not produce electricity for commercial purposes for the duration of the agreement, but will only operate if and when required by the national grid.However, under the agreement, Drax will get paid for its services and will be reimbursed for the costs it incurs, including coal.

In a statement, Drax CEO Will Gardiner noted that the group is “the UK’s largest producer of renewable energy, as a supplier to five million households through its biomass plants or hydropower plants” and that it “remains committed to” a future without coal. Drax also announced that it reflects longer coal-fired plant activity and improved production and logistics at other plants, he now expects adjusted EBITDA “slightly above the range of analysts’ expectations.”

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