Drax to stop burning controversial Canadian wood within next year

The Guardian World

by Jillian Ambrose

February 26, 2026

AI-Generated Deep Dive Summary

Drax Group, a FTSE 250 energy company, has announced it will stop burning wood pellets from British Columbia within the next year. The decision comes after criticism over sourcing material from some of Canada’s most environmentally important forests. Drax, which operates a power plant in North Yorkshire, once relied heavily on Canadian biomass for energy production but now faces significant financial challenges. Last year alone, its Canadian wood pellet operations incurred nearly £200m in financial impairments. The company has already begun reducing its use of Canadian wood pellets and is transitioning to alternative sources. This shift reflects growing concerns over the environmental impact of logging in British Columbia’s sensitive ecosystems, which are critical for biodiversity and carbon sequestration. Drax’s move away from Canadian biomass aligns with increasing scrutiny on sustainable practices in the renewable energy sector. While the company aims to reduce its reliance on controversial materials, questions remain about the long-term viability of its North Yorkshire power plant, which continues to rely on biomass for energy production. The decision also raises broader implications for global carbon reduction efforts and the credibility of biomass as a sustainable energy source. As Drax transitions away from Canadian wood, it highlights the challenges and opportunities facing the renewable energy industry in balancing environmental and financial priorities.

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Originally published on The Guardian World on 2/26/2026