Drax backs FY expectations, plans two new sites in US

(Sharecast News) - Drax backed its full-year profit expectations on Tuesday as it announced plans for two new biomass-fuelled power stations in the US. The company said two initial sites in the US South have been selected and are progressing to option, although the precise details remain commercially sensitive.

The two sites combined could enable the capture of around 6Mt of carbon per year by 2030 and total investment would be approximately $2bn per plant.

Drax said it is continuing to evaluate nine further sites in North America, "creating a pipeline of development opportunities into the 2030s".

The company also said its outlook for 2023 was unchanged. It continues to expect full-year adjusted earnings before interest, tax, depreciation and amortisation to be in line with consensus estimates of £1.16bn.

Chief executive Will Gardiner said: "Our plans to invest billions in critical renewable energy and carbon removal technologies will help to tackle the climate crisis and could create thousands of jobs whilst generating secure, renewable power. This investment is underpinned by our strong operational performance."