Drax Group
LSE: DRX16Greenwashing / Harmful0 followersPower Generation·Selby, UK·Founded 2005·Public
www.drax.comUK power generator that converted its coal plant to burn wood-pellet biomass, which it markets as renewable and 'carbon negative' — a claim widely contested by scientists and journalists.
Greenwashing risk: highData confidence: low
Why it's on ClimateTicker
Drax converted its former coal power station in Selby, UK to burn compressed wood pellets (biomass), which it claims makes it the world's largest 'carbon negative' power station — a framing heavily disputed by scientists, the UK's own Climate Change Committee, and investigative journalists who argue the lifecycle carbon accounting is fundamentally flawed. The core business depends on burning vast quantities of wood at scale, emitting more CO2 per MWh at the stack than coal, with the 'renewable' classification resting on contested assumptions about forest regrowth timelines that may span decades or centuries. Investors should treat Drax as a high-risk greenwashing exposure rather than a genuine climate solution.
harmfulDrax generates revenue by selling electricity from its biomass-fired power stations into the UK grid, and receives billions of pounds in UK government Renewable Obligation Certificates (ROCs) and Contracts for Difference (CfD) subsidies predicated on biomass being classified as renewable; it also operates pumped hydro, gas peakers, and a retail/B2B energy supply business.
Commitments & Certifications
Controversy & Greenwashing Watch
highUK Climate Change Committee Rejection of Biomass Carbon Claims
The UK's independent Climate Change Committee stated that Drax-style large-scale biomass power without CCS is not consistent with net-zero and that the carbon accounting assumptions underpinning its 'renewable' status are not scientifically robust.source ↗
medium£6bn+ Public Subsidy Dependency Amid Energy Crisis
Drax received more than £6 billion in UK government renewable energy subsidies for burning biomass while posting large profits and paying its CEO £4.5 million in 2022, drawing Parliamentary scrutiny and public criticism.source ↗
highCarbon Credit Integrity Concerns
Investigations raised serious questions about the validity of Drax's carbon credits and whether its 'carbon negative' marketing claims are supported by credible, independently verifiable accounting.source ↗
highCanadian Old-Growth Logging Allegations
Specific investigations found Drax pellet operations sourcing from Canadian old-growth forests in British Columbia, with footage of logging that Drax initially denied before amending its supplier policies under public pressure.source ↗
highBBC Panorama/ITV: Logging Protected Forests
A joint BBC Panorama and ITV investigation in 2022 found that Drax was sourcing wood pellets from logging operations in old-growth, biodiverse, and protected forests in Canada and the US South, directly contradicting its own sustainability policies.source ↗
highGlobal Witness: 'Drax the Forest Destroyer' Report
Global Witness published a detailed investigation alleging that Drax's pellet supply chain was responsible for destruction of biodiverse wetland forests in the US South that are habitat for endangered species.source ↗
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