North Yorkshire power generator Drax Group announced that its adjusted earnings before interest, taxes, depreciation and amortization rose 84% in 2022 to £731 million.

That’s above the average analyst expectations of £700 million compiled by Bloomberg.

Drax said its total dividend increased 11.7% to 21p per share, taking the firm’s full year dividend payment up to £84 million.

Drax shares fell as much as 5% as the firm did not provide formal guidance for the coming year.

Drax Group CEO Will Gardiner said: “Drax delivered a strong performance in 2022, and played a significant role in ensuring security of supply during a challenging year for the UK’s energy system.

“Our renewable generation – biomass, hydro and pumped storage – are a major source of power in the UK and during periods of peak demand when there was low wind and solar power, these assets collectively supplied up to 70% of the UK’s renewable power in certain periods.

“We believe that BECCS can become a world-leading solution for large-scale high-quality carbon removals and we are seeing increasing global policy support for its delivery.

“Drax stands ready to invest billions of pounds in the development of this technology and, following the introduction of the US Inflation Reduction Act, we are increasingly excited about the opportunities to deploy BECCS in the US.

“In response, the UK Government should accelerate its policy support for BECCS to make the UK a world leader in carbon removals, while attracting investment and delivering its net zero targets.

“Drax is a growing international business with strong cash returns which we are reinvesting to produce more renewable energy and deliver carbon removals while reducing our own carbon emissions.

“We aim to be at the heart of the energy transition, creating the jobs, renewable power and large-scale carbon removals that the world needs.”