Drax Share Price (DRX)

But no problem according to DRAX ???

https://www.ft.com/content/8af60bfa-f661-43e8-9096-e84b3884040d

"One of the world’s biggest producers of wood pellets sold to power utilities has filed for US bankruptcy, a downfall for a business seen by its backers as an alternative energy source to oil and gas."

"Enviva was flying high only two years ago as power plants from the UK to Japan started converting from coal to wood pellets as a source of fuel. Investors gave the company a market capitalisation of $6bn at its peak."

"But to expand production, the US company issued a large amount of debt as the cost of running its wood pellet processing plants increased. Additionally, a commodity trade Enviva entered into backfired when energy prices started to drop in the winter of 2022 to 2023, said Pavel Molchanov, an analyst at Raymond James."

"Drax, which buys wood pellets from Enviva and is listed as a creditor, said it was not expecting any interruption due to Enviva’s bankruptcy filing. It will have “no material impact” on Drax, the company said in a statement to the Financial Times."

EU doesn't care about the environment, it only cares about being in charge

"A study of Norwegian forests discovered that “increasing the use of wood from a boreal forest to replace coal in power stations will create a carbon debt that will only be repaid after almost two centuries of regrowth.”

The Study- https://www.researchgate.net/publication/227584033_Harvesting_in_boreal_forests_and_the_biofuel_carbon_debt

Burning wood is classed as a renewable energy source by the eu

DRX will get shot by environmentalists, importing ancient timber from Canada and burning it to produce energy, almost like we're still in the stone ages. Ironic that the environmental idiots caused this lunacy by stopping new nuclear plants from coming online, when nuclear is the best form of base power load and has zero emissions :)

I bought last week , so very pleased atm. SP seemed cheap and worth a punt GLTA