North Yorkshire power generator Drax Group said it is considering more global opportunities for deployment of its operations in BECCS — bioenergy with carbon capture and storage.

In a trading update, Drax said it now expects that full year adjusted EBITDA for 2022 will be slightly above the top of the range of analyst expectations “subject to continued good operational performance and logistics for the remainder of the year.”

Drax reported “growing global demand for negative emissions and increasing opportunities for BECCS” and updated on the development of its North American options “including two new-build BECCS power stations, a pellet plant with BECCS and coal-to-biomass-to-BECCS.”

Drax said it has agreed a new £200 million credit facility with banks within its lending group. The facility provides an additional source of liquidity to the group’s undrawn £300 million revolving credit facility, over the next 12 months.

Drax Group CEO Will Gardiner said: “Drax plays a critical role in supporting the UK energy system, generating more renewable power by output than any other company.

“During the difficult winter ahead, we will continue to optimise our biomass operations to ensure that more renewable power is available, when the country needs it most.

“As governments around the world increasingly look to introduce supportive policies for carbon removals, Drax is considering more exciting global opportunities for deployment of BECCS, advancing our ambition to be a leader in this critical technology.

“Drax is a growing, international business at the heart of the green energy transition and we are accelerating our plans to invest billions of pounds in critical renewable energy and carbon removal technologies which could create thousands of jobs and generate the secure, renewable power that this planet urgently needs.”