Drax power plant to stop burning Canadian wood from British Columbia within a year

Drax Group says it will stop burning wood sourced from British Columbia within the next year and has reduced use of Canadian pellets after recording almost £200m of impairments amid scrutiny and export tariffs.

Drax Group has begun reducing the amount of Canadian wood pellets burned at its North Yorkshire power plant and says it will stop burning material from British Columbia within the next year. The company reported almost £200m of impairments tied to its Canadian pellet plants. Drax linked the decision in part to tariffs imposed by Canada and growing scrutiny of the sustainability of some suppliers. The company also announced that from 2027 it intends to source pellets for the plant only from the United States. Key facts: - Drax will end burning wood from British Columbia at its North Yorkshire plant within the next year. - The company recorded almost £200m of impairments related to its Canadian pellet production facilities. - Drax said Ottawa's export tariffs and concerns about the Canadian supply chain contributed to the change, and it plans to source pellets only from the US from 2027. - Pellets produced in Canada may continue to be made but are expected to be exported to third-party buyers, primarily in Asia. Summary: The decision reduces Drax's reliance on wood sourced from British Columbia and follows financial write-downs and policy changes linked to Canadian exports. From 2027 the company says the North Yorkshire plant will burn pellets sourced only from the United States, while Canadian-produced pellets are likely to be sold to other markets.