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DRX 06:01

Drax Group PLC

Capacity Market Agreements

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**Summary**

Drax Group PLC announced on March 11, 2026, that it has provisionally secured capacity market agreements for 434MW of capacity (de-rated to 399MW) from its pumped storage, hydro assets, and small legacy gas turbines. These agreements are for the delivery period of October 2029 to September 2030, with a provisional clearing price of £27/kW/year, generating an estimated income of £11 million during that period. The assets involved include the Cruachan Pumped Storage facility, the Lanark and Galloway hydro schemes, and three small gas turbines at Drax Power Station. These new agreements complement existing ones that extend to September 2029. The announcement was made via the London Stock Exchanges Regulatory News Service (RNS).

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DRX 06:01

Drax Group PLC

Tolling agreement for 200MW (800MWh) of BESS

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**Summary**

Drax Group PLC announced a 15-year tolling agreement with Zenobē Coalburn Limited for a 200MW (800MWh) Battery Energy Storage System (BESS) at Coalburn, Scotland. The agreement, with no upfront capital cost for Drax, includes full operational control and dispatch rights, while Zenobē retains responsibility for construction, maintenance, and availability. The project targets a Commercial Operation Date (COD) in 2028 and is expected to deliver returns significantly above Draxs Weighted Average Cost of Capital (WACC). This deal aligns with Draxs FlexGen strategy, enhancing its short-duration and fast-response capabilities, and supports UK energy objectives of security and decarbonization.

Combined with recent acquisitions and agreements, Drax now has 710MW (1.8GWh) of BESS capacity under tolling contracts and physical assets, with a growing pipeline of opportunities. CEO Will Gardiner emphasized the strategic importance of flexible generation technologies like battery storage in delivering a secure, affordable, and clean energy system for the UK. The agreement is subject to Zenobēs final investment decision and achieving commercial operations.

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DRX 06:01

Drax Group PLC

Annual Financial Report

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Drax Group PLC, a UK-based energy company, reported its full-year results for 2025, highlighting record levels of renewable energy generation and a strong financial performance. Here’s a summary of the key points

### **Financial Highlights**

**Adjusted EBITDA**£947 million in 2025, down from £1,064 million in 2024, primarily due to lower achieved power prices.

**Net Debt**Reduced to £784 million from £992 million in 2024, with a Net debt to Adjusted EBITDA ratio of 0.8 times, significantly <mark style="background-color:yellow">below</mark> the target of around 2 times.

**Adjusted Basic EPS**: 137.7 pencecompared to 128.4 pence in 2024.

**Dividend per Share**Increased to 29.0 pence from 26.0 pence in 2024, marking the ninth consecutive year of dividend growth.

### **Operational Performance**

**Renewable Generation**Record levels achieved, contributing 6% of UK power and 11% of UK renewables.

**Pellet Production**Record levels produced, with a 5% increase compared to 2024.

**Biomass Generation**15.0TWh generated, up from 14.6TWh in 2024, supporting UK energy security.

### **Strategic Developments**

**Low Carbon Dispatchable CfD**Signed with the UK Government for Drax Power Station, providing increased visibility and supporting energy security.

**Battery Energy Storage Systems (BESS)**: Initial investments made, with commitments in 710MW of BESS developments.

**Flexitricity Acquisition**Acquired an optimization platform to support the development of the FlexGen portfolio.

**Data Centre Development**Exploring options for a 1.2GW-scale data centre at Drax Power Station, with a first phase of 100MW targeted for 2027.

### **Financial Outlook**

**2026 Adjusted EBITDA**Expected to be in line with analyst consensus estimates of £662 million.

**Post-2027 Adjusted EBITDA**Targeting £600-700 million per annum from Pellet Production, Biomass Generation, and FlexGen.

**Free Cash Flow**Targeting £3 billion from 2025-2031, with £0.5 billion delivered in 2025.

**Shareholder Returns**Over £1 billion to be returned through dividends and share buybacks, with a £450 million three-year buyback extension.

### **Sustainability**

**CDP and MSCI Ratings**Achieved A ratings for forestry and climate (CDP) and sustainability (MSCI).

**Sustainability Framework**Launched in 2025, aligning with TCFD, TNFD, and SBTi targets.

**Biomass Tracker Tool**Launched in 2026 to enhance transparency in biomass sourcing.

### **Challenges and Opportunities**

**Canadian Operations**Facing a more challenging outlook due to constrained fibre markets

strategic options are being reviewed.

**Energy Transition and AI Growth**Creating opportunities for investment in flexible and renewable energy, including BESS and data centres.

### **Leadership and Governance**

**CEO Comment**Will Gardiner emphasized the Group’s role in UK energy security and the strategic importance of the low carbon dispatchable CfD.

**Board Changes**Frank Lemmink appointed as CFO in September 2025, and Mark Clare joined as a Non-Executive Director in February 2026.

### **Conclusion**

Drax Group PLC demonstrated strong operational and financial performance in 2025, with a focus on renewable energy and strategic investments in flexible generation and storage. The company is well-positioned to capitalize on the energy transition and emerging opportunities in AI and data centres, while maintaining a commitment to sustainability and shareholder value.

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DRX 06:01

Drax Group PLC

Capacity Market Agreements

Open AI Digest

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Return to today’s catalyst cards, chart beacons and AI charts.

**Summary**

Drax Group PLC announced on March 11, 2026, that it has provisionally secured capacity market agreements for 434MW of capacity (de-rated to 399MW) from its pumped storage, hydro assets, and small legacy gas turbines. These agreements are for the delivery period of October 2029 to September 2030, with a provisional clearing price of £27/kW/year, generating an estimated income of £11 million during that period. The assets involved include the Cruachan Pumped Storage facility, the Lanark and Galloway hydro schemes, and three small gas turbines at Drax Power Station. These new agreements complement existing ones that extend to September 2029. The announcement was made via the London Stock Exchanges Regulatory News Service (RNS).

Go Back To AI Charts

DRX 06:01

Drax Group PLC

Annual Financial Report

Open AI Digest

Go Back To AI Charts

Return to today’s catalyst cards, chart beacons and AI charts.

Drax Group PLC, a UK-based energy company, reported its full-year results for 2025, highlighting record levels of renewable energy generation and a strong financial performance. Here’s a summary of the key points

### **Financial Highlights**

**Adjusted EBITDA**£947 million in 2025, down from £1,064 million in 2024, primarily due to lower achieved power prices.

**Net Debt**Reduced to £784 million from £992 million in 2024, with a Net debt to Adjusted EBITDA ratio of 0.8 times, significantly <mark style="background-color:yellow">below</mark> the target of around 2 times.

**Adjusted Basic EPS**: 137.7 pencecompared to 128.4 pence in 2024.

**Dividend per Share**Increased to 29.0 pence from 26.0 pence in 2024, marking the ninth consecutive year of dividend growth.

### **Operational Performance**

**Renewable Generation**Record levels achieved, contributing 6% of UK power and 11% of UK renewables.

**Pellet Production**Record levels produced, with a 5% increase compared to 2024.

**Biomass Generation**15.0TWh generated, up from 14.6TWh in 2024, supporting UK energy security.

### **Strategic Developments**

**Low Carbon Dispatchable CfD**Signed with the UK Government for Drax Power Station, providing increased visibility and supporting energy security.

**Battery Energy Storage Systems (BESS)**: Initial investments made, with commitments in 710MW of BESS developments.

**Flexitricity Acquisition**Acquired an optimization platform to support the development of the FlexGen portfolio.

**Data Centre Development**Exploring options for a 1.2GW-scale data centre at Drax Power Station, with a first phase of 100MW targeted for 2027.

### **Financial Outlook**

**2026 Adjusted EBITDA**Expected to be in line with analyst consensus estimates of £662 million.

**Post-2027 Adjusted EBITDA**Targeting £600-700 million per annum from Pellet Production, Biomass Generation, and FlexGen.

**Free Cash Flow**Targeting £3 billion from 2025-2031, with £0.5 billion delivered in 2025.

**Shareholder Returns**Over £1 billion to be returned through dividends and share buybacks, with a £450 million three-year buyback extension.

### **Sustainability**

**CDP and MSCI Ratings**Achieved A ratings for forestry and climate (CDP) and sustainability (MSCI).

**Sustainability Framework**Launched in 2025, aligning with TCFD, TNFD, and SBTi targets.

**Biomass Tracker Tool**Launched in 2026 to enhance transparency in biomass sourcing.

### **Challenges and Opportunities**

**Canadian Operations**Facing a more challenging outlook due to constrained fibre markets

strategic options are being reviewed.

**Energy Transition and AI Growth**Creating opportunities for investment in flexible and renewable energy, including BESS and data centres.

### **Leadership and Governance**

**CEO Comment**Will Gardiner emphasized the Group’s role in UK energy security and the strategic importance of the low carbon dispatchable CfD.

**Board Changes**Frank Lemmink appointed as CFO in September 2025, and Mark Clare joined as a Non-Executive Director in February 2026.

### **Conclusion**

Drax Group PLC demonstrated strong operational and financial performance in 2025, with a focus on renewable energy and strategic investments in flexible generation and storage. The company is well-positioned to capitalize on the energy transition and emerging opportunities in AI and data centres, while maintaining a commitment to sustainability and shareholder value.

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DRX 06:01

Drax Group PLC

Tolling agreement for 200MW (800MWh) of BESS

Open AI Digest

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Return to today’s catalyst cards, chart beacons and AI charts.

**Summary**

Drax Group PLC announced a 15-year tolling agreement with Zenobē Coalburn Limited for a 200MW (800MWh) Battery Energy Storage System (BESS) at Coalburn, Scotland. The agreement, with no upfront capital cost for Drax, includes full operational control and dispatch rights, while Zenobē retains responsibility for construction, maintenance, and availability. The project targets a Commercial Operation Date (COD) in 2028 and is expected to deliver returns significantly above Draxs Weighted Average Cost of Capital (WACC). This deal aligns with Draxs FlexGen strategy, enhancing its short-duration and fast-response capabilities, and supports UK energy objectives of security and decarbonization.

Combined with recent acquisitions and agreements, Drax now has 710MW (1.8GWh) of BESS capacity under tolling contracts and physical assets, with a growing pipeline of opportunities. CEO Will Gardiner emphasized the strategic importance of flexible generation technologies like battery storage in delivering a secure, affordable, and clean energy system for the UK. The agreement is subject to Zenobēs final investment decision and achieving commercial operations.

Go Back To AI Charts