Drax Group (LSE:DRX) will update investors next Thursday, 29 February as it tries to develop a bioenergy with a carbon capture and storage (BECCS) arm
FTSE 250-listed Drax was given the green light to retrofit its North Yorkshire biomass power plant last month with the carbon capture technology, leaving the company now just seeking finance before pressing ahead with the plans.
Analysts believe this may not be so clear cut though, with CitiGroup noting that public government support for such a controversial technology may be lacking in an election year.
Drax’s current subsidy agreement with the government, which guarantees payments of £118.54 per megawatt for some of the energy from its biomass plant, will run out in 2027.
Any news on future subsidy arrangements could therefore be key in Thursday’s report, given energy is far more expensive to produce using biomass than the likes of wind.
Drax also recently laid out plans to create a new business solely focussed on the rollout of BECCS, which it is planning for the US too.
The company said in December that the results should be in line with analysts’ expectations.
Revenues of £7.96 billion are expected for the year, up on the £7.76 billion reported last time around, with diluted per share earnings sitting at 114.4p, against 82.2p.
Shares have fallen by 36% over the past year to sit at 426.70p.