Drax suffers loss in the first half of the year after being hit by carbon taxes and fluctuations in energy prices
Power station giant Drax fell to a loss in the first half of the year after being hit by carbon taxes and fluctuations in global energy prices.
The group owns and runs the Selby power station in Yorkshire, and is converting three of its six plants to burn imported woodchips rather than coal.
The technology, which has been widely criticised because it involves cutting down trees on the other side of the world and flying them to the UK, is heavily subsidised by the Government.
Drax: The group owns and runs the Selby power station in Yorkshire, and is converting three of its six plants to burn imported woodchips rather than coal
Drax (up 13p at 699.5p) posted a pre-tax loss of £11million for the first half, compared to a profit of £206million in the same time last year.
It said part of this was from carbon tax, while part of it was an accounting loss from some hedging contracts around the price of energy.
The group is suing the Government after subsidies for converting one of the plants was withdrawn. Even though Drax won the case, the energy department has appealed. The latest hearing is this week.
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