Drax has reported its highest annual profits ever and is set to give shareholders a £150 million payout.

Drax’s 2022 profits rose to £731 million, up from £398 million the previous year.

The company’s strong performance was partly due to record electricity prices, which surged after Russia’s invasion of Ukraine.

Drax Group Chief Executive Officer, Will Gardiner said: “In the first quarter of 2023, we have delivered a strong system support and generation performance, providing renewable, secure, dispatchable power for millions of homes and businesses across the UK.

“We remain excited about the opportunity to do bioenergy with carbon capture and storage (BECCS) in the UK. Whilst the project is not currently in the Track 1 process, we have commenced formal discussions with the government to facilitate the transition to BECCS at Drax Power Station by 2030.

“At the end of March, we formally closed the remaining two coal units at Drax Power Station. This is a significant moment for the business and I’d like to thank the many hundreds of people involved in making this happen and transforming Drax into a global leader in biomass power generation.”