Drax Power Plant to Distribute £300m to Shareholders Amid Controversial Subsidies

The Drax power plant in North Yorkshire is set to reward its shareholders with a £300 million payout following a significant increase in taxpayer subsidies that propelled its profits to over £500 million in the first half of the year. The Drax Group reported earnings of £393 million from biomass subsidies, which have drawn criticism from climate activists who argue that biomass burning is unsustainable and may exacerbate carbon emissions. The plant, the largest single emitter of carbon dioxide in the UK, has received more than £6 billion in subsidies to date. Drax, which generates approximately 5% of the UK's electricity, is advocating for the government to extend its subsidy scheme, currently scheduled to conclude in 2027, until 2030. The company’s adjusted earnings rose to £515 million for the six months ending in June, up from £417 million during the same period last year. Drax anticipates continued profit growth in the latter half of the year, aligning with market expectations for its full-year results. Environmental campaigners have voiced strong opposition to Drax's operations, with Matt Williams from Cut Carbon Not Forests condemning the company for profiting from environmental degradation. Drax's CEO, Will Gardiner, defended the plant's role in the UK’s energy landscape, emphasizing its contribution to job support and electricity supply for millions. Critics, including Simon Francis from the End Fuel Poverty Coalition, argue that Drax is exploiting a flawed energy system and called for companies benefiting from the energy crisis to contribute more to support vulnerable households and pay fair taxes on their profits.