(Alliance News) - Norway's oil fund, the Government Pension Fund Global, on Thursday decided to revoke its exclusion of Drax Group PLC.
Drax was excluded from investment by the fund back in 2016 after an assessment of new product-based coal criterion. At that time, it was estimated that the company had coal power capacity in excess of 30% of total capacity.
"Since then, the company has undergone significant restructuring, with a transition from coal to biomass as fuel. Our estimates now indicate that the company's coal power capacity is less than 30% of the total power capacity by a good margin, and thus that the company bases less than 30% of its operations on coal," said Norges Bank, the Norwegian central bank, which manages the fund.
The decision to revoke the exclusion was based on a recommendation from Norges Bank Investment Management, the asset management unit of Norges Bank.
Shares in the FTSE 250-listed power generation firm were up 3.7% at 301.45 pence in London on Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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Drax (DRX)