Drax Group (LSE:DRX) PLC could keep its coal-fired power plants operating in the UK beyond their planned closure next year as a result of the energy shortage crisis in Britain.
“We’re very aware that the country might have a significant problem and if there’s something Drax can do we will absolutely think about doing that,” Drax chief executive Will Gardiner told the Financial Times on Wednesday during a visit to New York for the annual Climate Week gathering.
Gardiner said the UK would face a “tough winter” if temperatures were colder than average. He did not go as far as saying that Drax would run its coal plants at full capacity throughout winter, but he indicated the electricity provider was considering all options and could respond to government requests, the paper reported.
“If the government wants us to rethink our plans, we need to talk to them in the next few months,” he said.
Gas and electricity prices in the UK have soared to record highs as a result of low inventories in Western Europe, due to COVID-19; demand recovering in Asia; outages and maintenance shutdowns from key suppliers such as Russia; and a fire on a transmission line bringing power from France.
The UK relies on Europe for almost all of its heating and more than half of its power generation at times, the paper noted.
The UK had set a target to completely phase out coal by 2024 due to climate change concerns.
In its interim result statement in July, Drax was keen to announce that it had reduced its generation emissions by over 90% since 2012, and was one of the lowest carbon intensity power generators in Europe. It aims to be carbon negative by 2030.
Drax had planned to fully shut its two remaining coal plants in September 2022 and convert them to biomass. The plants have already been called back into action in the past two weeks to help plug a supply gap.