Drax powers £419m to Yorkshire and the Humber economy

Drax Group, the British energy business, contributed almost £1.7bn towards UK GDP in 2016 and supported thousands of jobs across the country, including £419m in the Yorkshire and Humber region.

The findings were revealed in a new report looking at the economic impact of Drax’s UK operations, which includes Selby-based Drax Power Station.

The Power Station, which employs around 900 people and has seen three of its six generating units converted to use compressed wood pellets, generated 16% of the country’s renewable electricity in 2016.

Ths was enough electricity for four million households, the equivalent of Leeds, Manchester, Sheffield and Liverpool.

In addition, the findings also showed that the energy group contributed £101.3m GDP and support for 1,650 jobs in the North West.

Researchers at Oxford Economics used three measures to calculate Drax’s GDP contribution: the economic activity associated with the day-to-day running of the business; the activity created by the purchase of goods and services from its suppliers; and the wages the company’s employees and suppliers’ employees spend in their local area.

Andy Koss, Drax Power CEO, said: “This new report demonstrates that as well as playing a vital role as the country’s biggest power generator, Drax Power Station continues to play a crucial role in supporting the Yorkshire economy.

“Thanks to a sophisticated supply chain that spans both the east and west coasts of the country, Drax supported over 6,000 jobs across the North of England last year and generated more than £1/2 billion in economic activity.

“Drax works with hundreds of businesses across the Northern Powerhouse region to ensure millions of homes across the country have the power they need each day.

“The North of England has a rich heritage in providing energy to the rest of the UK. Companies like Drax have an important role to play in delivering a low carbon economy as part of the Government’s wider industrial strategy for the country”.

Osman Ismail, senior economist at Oxford Economics, added: “Drax Group makes an important economic contribution to Yorkshire and the Humber, and the UK more widely. Its activities generated almost £1.7 billion in GDP last year, and sustained thousands of jobs across the nation.”