Drax Group Plc · LSE:DRX
Drax — Investor Day (November 2019)
11 slides from Drax's investor day presentation, Nov 19, 2019
Slide 1: Biomass Sustainability
Biomass Sustainability Dr Rebecca Heaton, Head of Climate Change 19 November 2019
Slide 2: Why is Biomass Sustainable?
Why is Biomass Sustainable? Sustainable biomass is a renewable fuel Biomass Generation carbon life cycle Biomass use contributes to healthy forests: – We only source from managed forests or where we can help forests stay healthy – Healthy managed forests support biodiversity – Healthy managed forest
Slide 3: Biomass is Recognised as Having an Important Role In Climate Change Mitigation
Biomass is Recognised as Having an Important Role In Climate Change Mitigation Globally and in the UK “Bioenergy use is substantial in [all] 1.5°C pathways with or without BECCS due to its multiple roles in decarbonizing energy use.” “Sustainably harvested biomass can play a significant role in meet
Slide 4: Managing Sustainability Risk
Managing Sustainability Risk Strong regulatory framework, internal processes and external certification Externally – Strong UK regulatory framework – EU Renewable Energy Directive II – sets minimum standards Drax exceeds Regulator approved scheme Internally – Demonstrating 100% compliance with regul
Slide 5: Managing Sustainability Risk
Managing Sustainability Risk Using residues and wood from forest operations: a managed forest consumes more CO2 and supports Forest Sawmill long-term investment in forest stocks Products Residues Drax biomass use (2018) 1% Sawlogs Wood chips 29% 37% Low grade Sawdust roundwood and thinnings 20% 13%
Slide 6: Managing Sustainability Risk
Managing Sustainability Risk North American Forest Growth Taking wood from forests that are growing and remain as forests Drax biomass use (2018) 2% 2% 3% 4% 10% 17% 62% We take from regions with large areas of growing forests and established forest industries USA Canada Latvia Estonia These areas o
Slide 7: Monitoring greenhouse gas emissions
Managing Sustainability Risk Monitoring greenhouse gas emissions Compliance with UK regulations requires full carbon foot printing of supply chain – Biomass supply chain is highly audited Other energy sources are not required to do this – Any comparison should take into account the supply chain emis
Slide 8: A World Leading Biomass Sustainability Policy
A World Leading Biomass Sustainability Policy A key component of our integrated approach to ESG A comprehensive policy that takes into account evolving science, key findings of the Committee on Climate Change bioenergy review and commits to future evolution Reducing CO2 Protecting the natural Suppor
Slide 9: A New Independent Advisory Board
A New Independent Advisory Board Experts from civil society, academia and forestry certification Professor Sir John Beddington (Chair) – Former UK Government Chief Scientific Adviser Professor Lord John Krebs (Vice Chair) – Emeritus Professor of Zoology, University of Oxford and The Board will provi
Slide 10: Summary
Summary Sustainability is inherent in all our choices of feedstocks and where they come from Established, tried and tested systems to meet current regulatory environment Policy designed to adapt to regulatory requirement A leadership role in defining sustainable biomass – setting world leading stand
Slide 11: Q&A
Q&A 19 November 2019