Energy generator Drax said today it will stop burning coal in 2021, ahead of the government’s 2025 deadline.
This was announced at the same time the company released its results for 2019.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased to £410m by the end of 2019, a 64 per cent year-on-year growth from £250m.
Share prices increased by two per cent 266.28.
The cost of closing the remaining two coal burning units will cost £25m to £35m.
The company also said 200 to 230 jobs will be lost from April 2021 as a result of the changes.
“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,” boss Will Gardiner said.
“Drax has delivered a strong set of full-year results following the successful integration of new hydro and gas generation assets and made good progress with this strategic initiatives to build a long-term future for sustainable biomass and be the leading provider of power system stability,” Gardiner added .
Changes included the conversion of four of its six burners to biomass, Drax’s net debt increased 163 per cent from £319m to £841m.
Total dividends increased from 14.1p to 15.9p year-on-year and total revenue also grew from £4.2bn to £4.7bn.
Consultation with unions and employees on job losses will begin shortly.