Shares of North Yorkshire power generator Drax Group rose as much as 4% after it announced a £150 million share buyback programme and published a first-quarter trading update ahead of its AGM.

On its full year expectations, Drax said it continues to expect full year adjusted EBITDA for 2023 to be in line with analysts’ consensus estimates, subject to continued good operational performance.

Drax Group CEO, Will Gardiner said: “In the first quarter of 2023, we have delivered a strong system support and generation performance, providing renewable, secure, dispatchable power for millions of homes and businesses across the UK.

“We remain excited about the opportunity to do BECCS (Bioenergy Carbon Capture and Storage) in the UK.

“Whilst the project is not currently in the Track 1 process, we have commenced formal discussions with the Government to facilitate the transition to BECCS at Drax Power Station by 2030.

“At the end of March, we formally closed the remaining two coal units at Drax Power Station.

“This is a significant moment for the business and I’d like to thank the many hundreds of people involved in making this happen and transforming Drax into a global leader in biomass power generation.

“In the US, we continue to make good progress screening options for over 10 BECCS projects which will deliver long-term, large-scale carbon removal.”

Drax now expects its capital investment in 2023 will be in the range of £520 million to £580 million, down from £570 to £630 million.