"The company warned that the pellet production plants, which have come under criticism from environmentalists, now face a challenging outlook after a decision in the second half of last year that, from 2027, the Drax power plant will burn pellets sourced only from the US."
"The Guardian revealed late last year that forestry experts believe Drax may have continued to burn 250-year-old trees sourced from some of Canada's oldest forests as recently as last summer despite growing concerns over its historic sustainability claims, which first emerged in 2022."
"The decision to end its imports of Canadian biomass to the UK was linked to Ottawa's decision to impose tariffs on its biomass exports, according to the company. It set out the plans amid growing scrutiny of the sustainability credentials of its Canadian supply chain."
Drax Group, a major UK power plant operator, is discontinuing its use of Canadian wood pellets and will source biomass exclusively from the US starting in 2027. The company wrote down nearly £200m in financial impairments from its Canadian pellet production plants last year. This decision follows environmental scrutiny regarding sustainability claims, particularly allegations that Drax burned ancient trees from British Columbia's old-growth forests. Canadian tariffs on biomass exports also influenced the shift. Despite these challenges, Drax reported strong 2025 earnings of £947m and increased shareholder dividends by 11.5%, pushing share prices to 20-year highs and valuing the company at approximately £3bn.
#biomass-energy #environmental-sustainability #supply-chain-transition #canadian-tariffs #old-growth-forests
Read at www.theguardian.com
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