Drax Group is on track to meet full-year EBITDA expectations of £665m in 2026, buoyed by robust operational performance across its portfolio. The FTSE 250 company, which operates the UK largest power station in Selby, North Yorkshire, continues to supply over 5% of the nation electricity and approximately 10% of its renewable power capacity.
During periods of peak demand, the facility can contribute up to 18% of the UK renewable power output, and on certain days exceeds 50%. The group flexible generation and renewables strategy enables it to support a secure, lower-cost power system while allowing increased integration of intermittent renewables and reducing reliance on imported power and higher gas-priced generation.
The company supply chain maintains high operational redundancy with limited exposure to commodity price volatility, sourcing biomass primarily from North America including its own facilities in the US South. To maximize output during high-demand periods, the group continues to optimize generation across its portfolio.
Drax Pellet Production business is performing well, with continued focus on cost reduction in US operations supporting UK energy security through biomass generation at Drax Power Station. A strategic review of the group Canadian operations remains ongoing.
Looking ahead, Drax sees long-term potential for bioenergy in new and existing markets as an alternative to fossil fuels, including sustainable aviation fuels and industrial processes. The group first battery storage projects and commissioning of its first OCGT unit are progressing, expanding the UK FlexGen portfolio.
Drax Group CEO Will Gardiner stated: “We have started the year well and have delivered a good operational performance across the group, supporting UK energy security at a critical time. Our assets, colleagues and supply chain partners have been working hard to help keep the lights on for millions of UK households and businesses through a period of acute geopolitical uncertainty.
We are at a key moment of transition in our business and in the UK energy system. We are excited about the potential opportunities to invest further to help the country meet its growing energy needs. These opportunities could create value for stakeholders and offer attractive returns for shareholders.
In February, Drax announced a major restructuring resulting in 350 redundancies as part of plans to build a strong, resilient business for the future. A consultation process is underway with affected staff in Yorkshire and North America.