Drax profits fall 10% as demand for power wanes

That it isn’t going well in the economy is well-known. Drax, a coal-fired power station that generates the most energy and carbon emission in the UK, has announced that the profits have fallen by 10% last year. This is partly the result of the power demand that is reduced.

The CEO of the company explained that last winter the power demand of the companies has been 5% to 6% lower than other years due to the reduced production. This isn’t only the case with the companies. The households are also saving energy to cut costs.

In the near future Drax wants to expand. They’re planning to build 3 biomass plants and increasing the amount of biomass. It also plans to cut emissions levels by almost a fifth by 2011.

Environmentalists are concerned about the sustainability of biomass because it is mixed with conventional fuel such as coal. They say that it could result in a furore. The government has already scaled back bio-fuel targets because of an increasing deforestation.

Personally I think that this company is very important to the UK. But in this difficult times everyone wants to save money, so it is logical that the profits of the companies are being cut back.
I also think that everyone must support this initiative of building biomass plants. Biomass is also a renewable energy source which is good for Mother nature. It’s biological material that can be used as fuel. There also could be generated electricity from this.

Source: http://www.guardian.co.uk/business/2009/mar/03/drax-biofuel-energy-biomass

Kevin De Pauw