Analysis by Oxford Economics has shown that renewable energy leader Drax contributed £1.8 billion ($2 billion) toward the UK economy and supported 17,800 jobs last year.
The analysis measured the economic impact of Drax Group’s UK operations.
Drax plans to invest £2.5 billion ($2.8 billion) in its green energy projects in the UK this decade, supporting security of supply and the UK’s net zero ambitions. The plans include building the world’s largest carbon capture in power project at its North Yorkshire plant and proposals to construct Cruachan 2, the UK’s first new pumped storage hydropower station in more than 40 years.
In May, Drax submitted an application for planning consent to build a new underground pumped storage hydro power station that would more than double the electricity generating capacity at its Cruachan Power Station in Scotland. This expansion will support UK energy security, reduce energy costs and cut carbon emissions by enabling more renewable power to be used by homes and businesses, Drax said. The new power station, with a capacity of up to 600 MW, could be operational by 2030, with construction work getting under way in 2024.
“Our research demonstrates the significant contribution that a large and successful British company like Drax Group can make to the global economy,” said Stephen Foreman, associate director at Oxford Economics. “Drax Group’s operations in the UK, U.S., and Canada generated £3.1 billion in GDP in 2021 and supported over 35,000 jobs across these three markets. We also find that the activity generated by Drax’s power stations, pellet plants, and corporate offices is having a positive impact on local communities across the UK, the U.S. and Canada.”
Jobs supported by Drax’s activities across the UK covered a wide range of sectors, including high-skilled manufacturing of industrial components, engineering and technical machinery, IT, professional business services and transporting goods.
“Not only is Drax playing a critical role in keeping the lights on for millions of homes and businesses across the country, but we are also proud to be supporting thousands of jobs in the UK and contributing millions of pounds to the economy at a time when it is under severe pressure,” said Will Gardiner, Drax Group chief executive officer. “With the right support from government, Drax stands ready to invest hundreds of millions of pounds … so we can do even more for our communities and the climate.”
Drax Group’s purpose is to enable a zero carbon, lower cost energy future, according to a release. Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the mountain Ben Cruachan.
