Drax Group

What Drax Group does

Drax Group plc is a UK-listed renewable energy company (LSE: DRX) headquartered at Drax Power Station in Selby, North Yorkshire, with operations spanning the United Kingdom, United States, Canada, and Japan and approximately 2,974-3,500 employees worldwide. The company operates the UK's largest single-site renewable power station at 2.6GW of biomass capacity, supported by a vertically integrated wood pellet production network of approximately 5Mt annual capacity across 14 plants in the USA and Canada (Pinnacle Renewable Energy). Beyond biomass, Drax has built a flexible generation portfolio totaling ~2.1GW including the 440MW Cruachan pumped storage hydro station in Scotland, ~0.1GW of hydro-electric schemes, three open-cycle gas turbine plants (including the 299MW Hirwaun plant), and a growing battery energy storage system (BESS) pipeline of ~710MW expected online from end-2027.

Drax makes money through multiple streams: selling renewable electricity and ancillary grid services from its generation fleet, wholesale and third-party sales of sustainable wood pellets, and retail electricity supply to industrial and commercial customers through the Opus Energy, Haven Power, and Drax Energy Solutions brands. Revenue is increasingly underpinned by long-dated government contracts, including a £109.90/MWh low-carbon dispatchable Contract for Difference covering all four biomass units from April 2027 to March 2031 and approximately £650 million of Capacity Market agreements extending to 2043. A new growth vector is the planned AI data centre campus at the Selby site, targeting 100MW initial capacity scaling beyond 1GW post-2031, alongside carbon removal services via the Elimini subsidiary using BECCS technology.

Recent strategic activity has been heavy on M&A and partnerships: Drax completed the Apatura BESS acquisition (£157.2M, 260MW) in late 2025, acquired Flexitricity (~£36-42M) in April 2026 to add AI-enabled asset optimization across 900MW of flexible assets, and announced the acquisition of Bluefield Solar Income Fund (~£548-561M) in June 2026 to add ~0.9GW of operating solar and wind plus a 2.9GW development pipeline. Tolling agreements with Zenobē (15 years, 200MW/800MWh) and Fidra Energy (10 years, 250MW/500MWh) lock in long-dated BESS revenue. Despite this expansion, FY2025 revenue of £7.7 billion and adjusted EBITDA of £1.1 billion were down year-on-year, and the company is executing a restructuring involving 350+ redundancies and a ~50% workforce reduction in its carbon capture division, signaling active portfolio reshaping.

Name

Drax Group

Legal name

Drax Group plc

Website

https://drax.com

Company type

Public

Founded year

1974

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Drax Group plc is a UK-listed renewable energy company operating the UK's largest biomass power station (2.6GW), a vertically integrated wood pellet network (~5Mt capacity in North America), and a growing flexible generation portfolio spanning pumped storage, battery storage, and gas turbines for industrial, commercial, and grid customers.

Ownership category

akta.pro rank

Product category

Renewable Power Generation

NAICS

Biomass Electric Power Generation (221117), Electric Power Generation (22111), Wind Electric Power Generation (221115)

SIC

Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

BECCS Project Development & Integration (Permitting, FEED, EPC Interface) (EUAAALAA)

akta.pro secondary industries

Onsite Low-Carbon Heat & CHP (Electrified CHP, Fuel Cells, Renewable CHP) (EUABAJAI), Reciprocating Gas Engine Power Plants (RICE) (EUACABAC), Contracted Wind Power Generation (PPA/CFD/FiT-backed) (EUACAFAJ)

Keywords

• Biomass power generation
• Renewable electricity supply
• Battery energy storage
• Sustainable wood pellets
• Carbon capture storage

Headquarters

HQ city

Selby

HQ country

United Kingdom

HQ region

Europe

Offices12 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Personnel, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Renewable power generation: Generation of renewable electricity from sustainable biomass at Drax Power Station (2.6GW capacity), providing approximately 10.6% of UK renewable electricity in 2025. Revenue was £7.7 billion in full-year 2025.
2. Biomass pellet production and sales: Vertically integrated producer of sustainable wood pellets with approximately 5 million tonnes per annum capacity across 14 plants in the USA and Canada. Produces pellets for own use and third-party sales to customers in Asia and Europe.
3. Renewable electricity sales to businesses: Drax Energy Solutions supplies renewable electricity and decarbonisation services to industrial and corporate customers, including system support and energy management services for embedded renewable generators.
4. Carbon removals (Elimini): Elimini subsidiary focused on delivering carbon removals at megaton scale through BECCS technology, with 11 carbon dioxide removal deals and over 20 potential BECCS sites under review in North America.
5. Capacity market agreements: Revenue secured through Capacity Market agreements extending to 2043, providing approximately £650 million in contracted capacity payments for grid reliability services.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Drax Group generates renewable electricity from sustainable biomass at its 2.6GW Drax Power Station, produces sustainable wood pellets across 14 plants in North America, operates a flexible generation portfolio spanning pumped storage hydro, battery energy storage, hydro-electric, and gas turbine assets, sells renewable electricity and decarbonisation services to industrial and commercial customers, and is developing BECCS-based carbon removal services through its Elimini subsidiary.

Product overview

Drax Group operates a diversified portfolio of renewable energy assets organized across three main business segments: Flexible Generation (FlexGen) combining pumped storage hydro, battery storage, hydro-electric schemes, and gas turbines totaling approximately 2.1GW of storage and flexible generation capacity; Pellet Production with 14 plants producing approximately 5Mt per annum of sustainable wood pellets for own use and third-party sales; and the Drax Power Station site providing 2.6GW of biomass capacity. The company has expanded through acquisitions including Flexitricity (AI-enabled energy optimization services) and is developing AI data centres leveraging its site infrastructure. Carbon removal ambitions are pursued through the Elimini subsidiary focusing on BECCS technology. The portfolio enables 24/7 renewable power generation, grid balancing services, and energy sales to commercial and industrial customers via Drax Energy Solutions and Opus Energy.

Differentiator

Problem solved

Functional benefit

Products and services

• Drax Power Station The UK's largest single-site renewable power station, located in Selby, North Yorkshire. Provides 2.6GW of dispatchable biomass-fired renewable electricity capable of powering more than 8 million homes and contributes approximately 10.6% of UK renewable electricity. Drax Power Station is the planned location for BECCS carbon capture retrofit and AI data center co-location.
• Flexible Generation (FlexGen) Drax's flexible generation portfolio of approximately 2.1GW combining pumped storage hydro (440MW Cruachan), battery energy storage systems, hydro-electric schemes (Lanark and Galloway), and open-cycle gas turbines (Hirwaun 299MW, Millbrook, Progress Power) to deliver dispatchable power, grid balancing services, and capacity market revenues.
• Pellet Production and Sales Vertically integrated production of sustainable wood pellets at approximately 5Mt per annum capacity across 14 plants in the USA and Canada (including Gloster Mississippi, LaSalle Louisiana, Morehouse Louisiana). Pellets are consumed by Drax Power Station and sold to third-party power and industrial customers across Europe and Asia, certified under SBP v2.0 and tracked through the Biomass Tracker for full supply chain traceability.
• Cruachan Power Station Pumped storage hydro station located inside Ben Cruachan mountain in Scotland ('Hollow Mountain') providing 440MW of dispatchable capacity. Reaches full load in approximately 30 seconds and sustains maximum power output for over 16 hours, supplying ancillary grid balancing services.
• Battery Energy Storage System (BESS) Utility-scale battery storage projects delivering short-duration, fast-response storage for grid balancing, renewable integration, and capacity market participation. Includes owned projects (Marfleet, Neilston, Coalburn, West Burton) under tolling or direct operation, with approximately 710MW expected from end-2027.
• Flexitricity AI-enabled energy optimization and route-to-market services business acquired from Quinbrook, managing over 900MW of flexible energy assets including batteries, gas peakers, renewables, and demand response. Provides optimization and trading services for Drax's BESS portfolio and third-party flexible asset owners.
• Drax Energy Solutions (with Opus Energy and Haven Power) B2B renewable electricity retail and decarbonisation services business supplying industrial and corporate customers across the UK through the Drax Energy Solutions, Opus Energy, and Haven Power brands. Provides renewable electricity supply, energy management, system support, and route-to-market services for embedded renewable generators.
• Carbon Removals (Elimini / BECCS) Bioenergy with Carbon Capture and Storage (BECCS) carbon dioxide removal service delivered through the Elimini subsidiary, targeting removals at megaton scale. Over 20 potential BECCS sites are under review in North America alongside the UK pilot, with a stated target of 8 million tonnes of CO2 removal annually by 2030.

Quantifiable outcome

• 10.6% of UK renewable electricity generated in 2025
• +5 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Ten partnerships are on record, tiered minor and core.

• Carbon Capture and Storage Association (CCSA) and industry stakeholdersminorStrategic or Co-development Partner · 5 June 2026Joint open letter with 50 industry stakeholders including ENGIE, Worley, Nuada, Eni, Holcim, Northern Endurance Partnership, and MOL Group urging regulatory clarity on EU-UK ETS linkage for cross-border CCUS projects.
• Global SwitchcoreStrategic or Co-development Partner · 3 June 2026Drax's commercial & industrial arm providing solar power infrastructure for a PPA agreement with Global Switch in the UK, supporting data center operations with renewable energy.
• Bluefield Solar Income FundcoreStrategic or Co-development Partner · 1 June 2026Drax agreed to acquire BSIF for approximately £548-561 million, gaining ~0.9GW of operating solar and wind assets plus 2.9GW development pipeline. The acquisition expands Drax's UK renewables portfolio significantly.
• Smart Green Shipping and Swire BulkminorStrategic or Co-development Partner · 18 May 2026Partnership to advance commercial deployment of SGS's FastRig wingsails on ships carrying sustainable biomass. Collaboration follows 'Winds of Change' research project funded by UK government's Clean Maritime Demonstration Competition.
• Humber Freeport / CATCHminorStrategic or Co-development Partner · 29 April 2026£5m Humber Freeport-funded industry collaboration space opened at CATCH facility in Stallingborough, supporting industry collaboration, conferences, education partnerships, and skills development in emerging sectors including hydrogen, carbon capture, and renewable energy.
• FlexitricitycoreTechnology or Integration · 1 April 2026Drax acquired Flexitricity for £36-42 million to enhance AI-enabled asset management capabilities. Flexitricity provides optimisation and route-to-market services for flexible energy assets including battery storage, gas peakers, renewables, and demand response, managing over 900MW of flexible energy assets.
• Canadian Solar (e-STORAGE)coreTechnology or Integration · 31 March 2026Canadian Solar's e-STORAGE division contracted to deliver 420 MWh of battery energy storage systems for Drax's Marfleet (120 MWh) and Neilston (300 MWh) projects in the UK, with installations scheduled for 2026 and 2027.
• ZenobēcoreTechnology or Integration · 19 February 202615-year tolling agreement for 200MW (800MWh) battery energy storage capacity at Coalburn, Scotland, giving Drax full operational control and dispatch rights. This is the longest disclosed FPA term for a standalone BESS project in Europe.
• Fidra EnergycoreTechnology or Integration · 30 January 202610-year tolling agreement for 250MW (500MWh) BESS project at West Burton, England, with commercial operations targeted for 2029. Fidra manages construction, maintenance, and availability risks.
• Imperial College LondoncoreStrategic or Co-development PartnerOngoing commissioned research partnership with Imperial College London for energy analysis. Conducted research on UK battery storage capacity and wind generation patterns, with analysis showing UK's battery storage reaching nearly 7 GW.

Scale indicators15 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Ørsted: Danish renewable energy leader transitioning from fossil fuels to renewables with significant biomass CHP operations and offshore wind portfolio. Comparable strategic positioning as a former fossil fuel generator pivoting to renewables, with similar challenges in managing legacy assets while investing in new low-carbon technologies.
• RWE AG: German utility with major UK presence including biomass generation operations and large-scale renewable energy portfolio. Operates comparable flexible generation assets across Europe and shares exposure to UK government support mechanisms and CfD contracts, with similar strategic pivot from fossil to renewable generation.
• SSE plc: UK-listed integrated energy company with substantial renewable generation portfolio including hydro, biomass co-firing at Ferrybridge, and large-scale BESS investments. Most directly comparable UK peer given overlapping generation mix, geographic footprint, and regulatory exposure to UK electricity policy and CfD/Capacity Market mechanisms.
• Engie: French multinational utility that was the former owner of Drax's Cruachan pumped storage hydro asset. Operates biomass generation and renewable energy infrastructure across Europe with comparable decarbonization strategy and exposure to European power markets and renewable support mechanisms.
• Vattenfall: Swedish state-owned utility operating large-scale biomass CHP plants across Northern Europe. Directly comparable on biomass generation technology, district heating integration, and EU regulatory exposure for sustainable biomass sourcing and renewable energy support schemes.

Broad incumbents

• E.ON: German integrated utility with significant UK presence and renewable generation portfolio. Comparable on European renewable energy generation and grid services exposure, though focused more on distribution networks and customer solutions than large-scale generation.
• Centrica: UK integrated energy company with generation, retail, and services businesses. Comparable through its British Gas generation portfolio and UK electricity retail exposure via Opus Energy-style subsidiary structures, though focused on natural gas and nuclear rather than biomass.
• Iberdrola: Spanish multinational utility and global renewable energy leader with large-scale wind, hydro, and battery storage portfolio. Comparable on the strategic shift toward renewable generation and grid-scale storage, though with a different technology mix centered on wind rather than biomass.
• Enel: Italian multinational utility with one of the world's largest renewable energy portfolios. Comparable on the strategic pivot toward renewables and grid infrastructure, with similar scale of operations and exposure to European power markets and decarbonization policy frameworks.
• NextEra Energy: World's largest renewable energy generator with substantial wind and solar portfolio plus battery storage operations through NextEra Energy Resources. Comparable on scale of renewable generation, BESS investment strategy, and AI-enabled grid optimization, though operating primarily in US markets rather than UK/Europe.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/drax-power
• Xx.com/Draxnews
• Facebookfacebook.com/draxgroup

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles16 records

Subsidiaries8 records

Funding overview

Funding rounds3 records

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A6 records

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Drax Group