Earnings look set to top a billion pounds at a North Yorkshire energy company this year.

Drax has told investors it is performing strongly across its electricity and wood chip production operations.

The company, which operates the UK largest biomass plant at Selby, says its full year ebitda (earnings before interest, tax, depreciation and amortization) will come in at the top of estimates of between £993million and £1.04billion.

The figures for 2024 come in a trading update issued this week.

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They also include the company saying expects continued ebitda of £250million a year from its flexible generation and pellet production operations.

As of November 8, Drax had over £3.2 billion of contracted forward power sales between 2024 and 2026 on its biomass, pumped storage and hydro generation assets – 27.5TWh.

The Group has a further 6.1TWh of generation contracted for 2024 and 2025, it said.

Drax Group CEO, Will Gardiner said: “We continue to deliver a strong operational performance, supporting the UK energy system with dispatchable, renewable power, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain.

“Our Flexible Generation and Pellet Production businesses are making good progress towards our target to deliver post 2027 recurring EBITDA over £500 million and we are continuing to develop options for growth, while remaining disciplined on capital allocation.

“The UK Government aims to deliver a clean energy system by 2030, and NESO’s Clean Power 2030 report shows that large-scale biomass, BECCS and flexible generation are included in both pathways.

“We are excited to be a part of that process. Our investment in BECCS remains contingent on gaining further clarity from UK Government on the frameworks for continuing the operation of the power station beyond 2027 and supporting BECCS conversions from 2030.

“Subject to the right investment framework and milestones, Drax will develop its options for BECCS and pumped storage hydro which could create thousands of new jobs and private investment into green energy projects in both Yorkshire and Scotland.

Mr Gardiner added: “We believe that biomass has a growing role to play in the energy transition, such as in the production of SAF. We have also launched our new Elimini carbon removals business which aims to develop projects providing 24/7 power and carbon removals outside the UK, offering long-term investment opportunities in what we believe could be a major new global market.”

This article originally appeared in our sister title, the York Press.