Drax to stop burning controversial Canadian wood within next year

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Drax Group, owner of the Drax power plant in North Yorkshire, will cease burning Canadian wood pellets within the next year due to financial impairments and Canadian tariffs. This decision follows criticism regarding the sustainability of Drax's Canadian supply chain, with concerns raised about sourcing wood from old-growth forests in British Columbia. Drax's Canadian wood pellet plants faced almost £200m in financial impairments last year, and the company will shift to sourcing pellets exclusively from the US by 2027. Despite the writedown, Drax reported better-than-expected earnings and raised shareholder dividends. The Drax power plant has received over £7 billion in subsidies based on the condition that biomass pellets are made from waste or low-value wood from sustainable forests.
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