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The world of renewables this week

Reading between the lines of the Drax accounts, it looks to us to be a business that is no longer a going concern. It registered revenues of £4.7 billion, up £500 million, but made just £500,000 profit. Its accounts suffered one major adjustment, for derivative contracts of £133 million which could not be hedge funded. The company has all manner of accounting “adjustments” that also seem unwise. It claims it will cut its biomass costs from £75 per MWh to £50 simply by the dollar to pound currency moving to $1.45 per £1 and by bringing in more pellet production in-house. But the big race is for its biomass life cycle carbon emissions which it says are 124 kgCO2/MWh against…

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