Drax dropped from index of inexperienced vitality companies amid biomass doubts
Doubts over sustainability of firm’s wood-burning energy plant mount inside monetary sector
Drax has been booted from an funding index of fresh vitality firms as doubts over the sustainability of its wood-burning energy plant start to mount throughout the monetary sector.
The FTSE 100 vitality large, which has acquired billions in renewable vitality subsidies for its biomass electrical energy, was axed from the index of the world’s greenest vitality firms after S&P International Dow Jones modified its methodology.
The exit from the S&P International Clear Power Index is a blow to Drax, which has vowed to change into the world’s first “carbon-negative” vitality firm by the top of the last decade.
It comes amid rising scepticism about its inexperienced credentials after the monetary providers agency Jefferies advised its shoppers this week that bioenergy was “unlikely to make a constructive contribution” in the direction of tackling the local weather disaster.
Drax was as soon as one of the largest coal power generators in Europe earlier than it transformed 4 of the producing models at its North Yorkshire website to burn biomass as an alternative. It acquired greater than £800m in authorities subsidies and tax breaks to help the conversion final 12 months, and will anticipate billions extra sooner or later.
The article goes on to clarify the problems, how Drax ships 2/3rds of its gasoline throughout the Atlantic from the US and the way this carbon accounting juggling act not fools determination makers.
After all the quotes close to the top of the article are priceless.
A authorities spokesperson declined to remark.
A Drax spokesperson mentioned its biomass “meets the best sustainability requirements” and that the “science underpinning carbon accounting for bioenergy” was “crystal clear”.
HT/roaddog
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