The firm says it is ‘focused on driving growth in our flexible generation business’
Drax power station near Selby, North Yorkshire.(Image: PA)
Power company Drax has announced a major restructuring which will lead to 350 redundancies as part of plans to build “a strong, resilient business for the future”. The FTSE 250 firm operates the country’s largest power station in North Yorkshire, which generates around 5% of the UK’s electricity predominantly from sustainable biomass.
At the end of last year it made two significant announcements, including its plans to establish a data centre at its Yorkshire site, highlighting how it plans to repurpose existing infrastructure at the power station, based between Selby and Goole, to develop a data centre. A centre could be operational as early as 2027, and it indicated it plans to allocate up to £2bn for incremental investment, primarily in flexible and renewable energy.
A month earlier it struck a £157.2m deal to acquire three battery energy storage system (BESS) projects. The sites are based in Marfleet in Hull, Neilston in East Renfrewshire, Scotland, and East Kilbride in Lanarkshire, Scotland.
Now, the firm said it is “focused on driving growth in our flexible generation business”, resulting in the restructure. The company says 350 redundancies are set to be made, and it has now started a consultation process with affected staff, in Yorkshire and North America.
Drax Group has acquired three ready-to-build battery storage system projects from Apatura.(Image: Apatura)
The biomass power station operators said: “As the global business and energy landscape continues to develop, we’re evolving our strategy to ensure we’re building a strong, resilient business for the future. The recent signing of the low-carbon dispatchable CfD agreement is recognition of the important role that Drax Power Station will continue to play for UK energy security into the 2030s.
“Moving forwards, we’re focused on driving growth in our flexible generation business, creating new options and opportunities at Drax Power Station beyond 2031, and advancing future uses of sustainable biomass. To help realise these opportunities, we’re adapting our organisational structure.
“As a part of that process, we are commencing a consultation process in the UK, and will be briefing colleagues in North America on changes that could result in a reduction of more than 350 roles across the Drax Group. We believe these changes are key to our long-term success and our continued commitment to deliver UK energy security and to support the energy transition.
“This is in no way a reflection of the professionalism, passion and commitment that our colleagues have shown. We will support our colleagues as we develop these proposals and work closely with our unions and elected employee representatives as we implement them.”
Union representatives from GMB accused Drax of betraying its employees. Deanne Ferguson, GMB senior organiser, said: “You can’t build a low-carbon future by making skilled energy workers redundant.
“Drax has had huge public subsidies – yet has betrayed the workforce and the communities that have supported it. A just transition means secure jobs, proper planning and workers at the heart of change. Ministers need to step in and make sure the reality matches their rhetoric. GMB will fight for nothing less.”