Drax Executives Privately Questioned Sustainability Claims Amid Public Denials
Senior executives at Drax, the operator of Britain's largest power plant, privately expressed doubts about the validity of the company's sustainability assertions while it publicly refuted allegations of sourcing wood from environmentally critical forests, according to newly disclosed court papers.
Internal Concerns Over Green Credentials
The energy giant, based in North Yorkshire, assured ministers and civil servants of its green credentials as it defended itself against claims in a 2022 BBC Panorama documentary. The programme alleged that Drax had burned wood pellets derived from "old-growth" forests in Canada. Despite public denials from top leaders, including Chief Executive Will Gardiner, other executives internally raised alarms about insufficient evidence to support these sustainability claims.
Evidence submitted to an employment tribunal involving Rowaa Ahmar, Drax's former head of public affairs, highlights these internal tensions. Ahmar alleged she was dismissed after warning Gardiner that the company was "misleading the public, government and its regulator" regarding the sustainability of imported pellets.
Subsidies and Sustainability Scrutiny
Drax has received over £7 billion in subsidies from household energy bills, contingent on using waste or low-value wood from sustainable forests for its biomass pellets. However, the company's business model, which involves importing millions of tonnes of wood pellets annually across the Atlantic, has faced repeated scepticism.
In response to the BBC documentary, Drax claimed that 80% of its pellet material was sawmill residue, with the remainder as waste. Yet, forestry experts have indicated that as recently as last summer, the company sourced 250-year-old trees from Canada's oldest forests via the Burns Lake pellet plant.
Compliance Issues and Regulatory Fallout
Ahmar's witness statement reveals that Drax's head of compliance admitted in an email that the company might have consistently burned old-growth pellets since at least 2019, potentially leading to "significant misreporting of burn data" under government subsidy schemes. Further concerns were raised about Drax's inability to prove the exact origin of all wood pellets, undermining claims of sustainability and legal compliance.
Paul Sheffield, Drax's chief commercial officer, acknowledged awareness of these issues, noting that concerns were escalated to the executive committee. An online meeting with another compliance staff member indicated that Drax did not measure every log for sustainability, despite representing otherwise to Ofgem.
Company Response and Investigations
Gardiner stated in his witness testimony that the BBC allegations triggered a "crisis meeting" and acknowledged challenges in coordinating between UK and Canadian teams. He denied resisting a review of the allegations. Drax commissioned KPMG to review its data and public statements, but the findings remain undisclosed.
Ofgem conducted a 16-month investigation, concluding in August 2024 that there was no evidence of incorrect subsidy issuance or deliberate misreporting. However, it found "an absence of adequate data governance and controls" for wood sourcing from Canada between April 2021 and March 2022, resulting in Drax agreeing to pay £25 million in compensation. A separate Financial Conduct Authority investigation into "historical statements" about pellet sourcing is ongoing.
Settlement and Ongoing Scrutiny
Ahmar reached a settlement with Drax in 2024, with the company stating it was "mutually agreeable" without admission of liability. A Drax spokesperson emphasised that all claims were thoroughly investigated, with relevant material provided to Ofgem.
Drax, which produced 10% of Great Britain's electricity in 2024, transitioned from coal to biomass pellets by 2023, but the revelations underscore persistent questions about the environmental integrity of its operations and the transparency of its sustainability assurances.
