By Nina Chestney
LONDON (Reuters) - British power producer Drax Group Plc (L:DRX) said in its full-year results on Thursday it will end coal power generation at its North Yorkshire plant, ahead of Britain's 2024 deadline.
Drax, which has the capacity to provide electricity for around 13 million homes, has converted four of its six former coal-fired units in the past decade to use biomass wood pellets.
Although almost 50 years of coal-fired electricity generation at Drax power plant is expected to come to an end in March 2021, the firm said will ensure its two remaining coal units remain available until September 2022 under a government scheme to provide back-up electricity at short notice.
"Ending the use of coal at Drax is a landmark in our continued efforts to transform the business and become a world-leading carbon negative company by 2030," said Chief Executive Will Gardiner.
"Drax's journey away from coal began some years ago and I'm proud to say we're going to finish the job well ahead of the government ... deadline," he added.
Drax said the end of coal generation will lead to a reduction in staff at the plant of around 200-230 people from April 2021. Trade unions and employee representatives will be consulted over the coming months, the firm said.
It also expects a reduction in operating costs at the plant of around 25-35 million pounds per year when the coal phase-out is complete.
The company's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 64% to 410 million pounds for the year ended Dec. 31 from 250 million pounds a year earlier.
The rise in profit was due to the integration of acquired hydro and gas assets and a reduction in the cost of wood pellets.