FCA closes Drax investigation, finds no evidence of misleading statements
9 reported
The Financial Conduct Authority has closed an investigation into Drax after an almost 10-month review into the sourcing of wood pellets for its biomass station. The regulator said it reviewed thousands of pages but did not find evidence that justified any further action. The investigation began last year amid concerns that Drax had made misleading statements to the market about the origins of its biomass fuel. Drax operates the UK’s biggest biomass power station and imports millions of tonnes of wood pellets from across the Atlantic annually. The company argues that biomass provides reliable renewable electricity and has received billions of pounds in government subsidies. In 2025, Drax received £999m for generating about 4.5% of Great Britain’s electricity, according to the climate thinktank Ember. Shares in Drax rose by 1.2% in early trading on Thursday after the announcement.
What’s reported
The FCA closed its investigation into Drax after an almost 10-month review.
The regulator said it reviewed thousands of pages and found no evidence justifying further action.
The investigation began last year over concerns about misleading statements on biomass fuel sourcing.
Drax operates the UK’s biggest biomass power station in Selby, North Yorkshire.
In 2025, Drax received £999m for generating about 4.5% of Great Britain’s electricity, per Ember.
In 2024, Drax agreed to pay £25m to a redress scheme after Ofgem found inadequate data governance and controls on wood sourcing from Canada.
The FCA’s focus was on whether Drax’s annual reports and accounts between 2021 and 2023 contained misleading statements.
Drax CEO Will Gardiner said the company worked constructively with the FCA and is pleased the investigation closed with no action.
Shares in Drax rose by 1.2% in early trading on Thursday.
Key figures
Will Gardiner, chief executive of Drax
Financial Conduct Authority (FCA)
Ofgem (energy watchdog)
Ember (climate thinktank)
Sources: The Guardian
