UK's Drax forecasts annual core earnings around top end of market view
Adds details from statement in paragraph 2,3,5, background in 4, 6
Nov 12 (Reuters) -British power generator Drax DRX.L on Tuesday said it expects 2024 full year core earnings to be around the top end of analysts' consensus of between 993 million pounds to 1.04 billion pounds ($1.27 billion -$1.33 billion), on the back of strong pellet production and biomass generation.
Drax Power Station, the country's largest source of 24/7 renewable power, is performing well, the company said.
Drax, which generates around 6% of Britain's electricity, said it was continuing to target for more than 500 million pounds EBITDA post 2027 from its Flexible Generation and Pellet Production businesses.
Britain is aiming to decarbonise its power sector by 2030, a target that would require a large increase in renewable energy, such as wind and solar, as well as projects that store energy when there is insufficient wind or sun.
In September, the company said it could invest up to $12.5 billion developing biomass plants with carbon capture and storage (BECCS) in the United States over the next decade.
Drax seeks to develop its options for BECCS and pumped storage hydrogen, which could create thousands of new jobs and private investment into green energy projects in both Yorkshire and Scotland, CEO Will Gardiner said.
($1 = 0.7808 pounds)
Reporting by Shanima A in Bengaluru; Editing by Mrigank Dhaniwala
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