Drax Expands In US, Takes Advantage Of Inflation Reduction Act

It's Tuesday, May 23, 2023, and the time is now 4:21 pm.

Drax, a UK power generator, wants to grow in North America. They want to make the most of the Inflation Reduction Act in the US.

The FTSE 250 company picked two sites in southern USA for new bioenergy projects with carbon capture and storage (BECCS). The projects will cost $2bn each. They're also looking at nine more sites in North America.

The company said it has a business plan for developing US projects. This plan includes a tax incentive under the Inflation Reduction Act.

Many companies around the world were interested in the act. It offers lots of money in green subsidies. It's worth hundreds of billions of dollars.

Drax announced that they hired 80 employees in the US and Canada. The new employees will support current and future projects.

BECCS will become more important as companies and governments work on their carbon emissions.

Will Gardiner, the CEO of Drax Group, stated that the world's top climate scientists confirmed the need for reliable, renewable electricity and carbon removal technologies to solve the climate crisis.

Drax is a big business that is getting bigger. They offer renewable energy and carbon removals solutions. This helps with global efforts to achieve net zero emissions and energy security. Gardiner said this.

The company's stock rose by 2.7% to 639p. The report mentioned this.

The company had to stop its £2bn BECCS project because support from the UK government became uncertain. Now, there's news about it.