UK plant nears full switch away from coal

From being one of the worst polluters in the country, Drax has pivoted to an ambitious policy to reduce carbon emissions. (AFP/File)
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Updated 01 June 2020
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UK plant nears full switch away from coal

  • The Drax operation, providing 4 million households with electricity, sees CO2 emitted from burnt wood captured by newly planted trees

LONDON: As the coronavirus pandemic undermines the production of cleaner renewable fuels, the UK’s biggest electricity plant is close to using only biomass following a bumpy transition away from coal.

Situated in Yorkshire, northern England, the Drax Group power plant will complete its switch next year after embarking on a journey almost a decade ago to use organic matter alongside the fossil fuel to slash carbon emissions.

But the company’s method of capturing CO2 continues to raise concerns even as biomass has become Britain’s second largest renewable energy behind wind power, with only a handful of coal-run plants remaining in the UK. The Drax operation, providing 4 million households with electricity, sees CO2 emitted from burnt wood captured by newly planted trees.

Drax adds that the switch, in line with UK government policy to ban the use of coal by 2025, allows it to keep the plant running and maintain 900 jobs.

“More than 10 years ago, Drax was looking at its future ... and the UK, at the same time, was looking about how it could deliver its climate change objectives,” recalls Drax CEO Will Gardiner.

“And those two things came together in a very auspicious way so that there was a good recognition in the UK that biomass was a very good alternative ... to increase renewable power,” he told AFP in an interview. But the use of biomass to generate electricity is not without controversy.

In 2018, a total of 800 scientists wrote to the European Parliament calling for such biomass to be limited to wood residues, including cut branches, to limit deforestation. But even with such a move, gains to the environment can be trimmed by sourcing wood from afar. “Once you move from local usage ... to extracting trees from distant countries and shipping them to a factory, you are adding quite a significant amount of additional CO2 to the atmosphere,” noted Michael Norton, environment program director at European Academies Science Advisory Council (EASAC).

Norton added that it “takes anything from several decades to centuries to recover through the growth” of new trees.

The Drax plant imports from North America 80 percent of the wood that it burns, although Gardiner stresses that the company uses branches that otherwise would “rot in the fields and emit CO2.”

The International Energy Agency last week said in a joint report that “COVID-19 is intensifying the urgent need to expand sustainable energy solutions worldwide” — a timely boost for companies like Drax amid ongoing criticism regarding their net contribution in helping to tackle climate change.

“The growth of electricity generation from renewables appears to have slowed down as a result of the pandemic, according to the available data,” said the report, written also by the World Health Organization.

“But they so far appear to be holding up much better than other major fuels such as coal and natural gas,” it added.

Gardiner told AFP that he “doesn’t think there will be any coal or natural gas in our system in 2050.”

He added: “In the UK, I think wind power in 2050 probably will be 80 percent of the energy mix.

“At the same time, you always need something else in addition to wind power to provide for flexibility and for system support,” he said, noting that “biomass can do that.”


Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn

Updated 22 February 2026
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Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn

RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.

On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.

The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.

According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.

The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.

The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.

The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.

Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.

The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.

Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.

Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.

The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.

Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.