New report finds Drax Contributes $1 Billion to Canadian Economy

Rhea-AI Summary

A new economic analysis by MNP reveals that Drax Group contributed $1 billion to the Canadian economy and supported over 3,000 jobs in 2023. Drax operates 10 pellet plants across British Columbia and Alberta, producing sustainable biomass wood pellets for renewable power generation in the UK and Asia. The company's commitment to local sourcing is evident, with nearly 75% of goods and services purchased from provincial suppliers.

The report highlights Drax's significant impact on rural communities, providing 26% and 18% of total employment income in Entwistle and Burns Lake respectively. Drax's operations support various sectors, including high-skilled manufacturing, engineering, and transportation. The company's use of residuals and by-products from local sawmills also contributes to waste reduction and wildfire prevention.

Positive

• Contributed $1 billion to the Canadian economy in 2023
• Supported over 3,000 jobs across Canada
• Generated $372 million in GDP in 2023
• Nearly 75% of goods and services sourced from local provincial suppliers
• Significant employment impact in rural communities (26% in Entwistle, 18% in Burns Lake)
• Supports waste reduction and wildfire prevention through use of sawmill residuals

Negative

• None.

Independent analysis illustrates the positive impact of Drax's wood pellet operations and how it helps support more than 3,000 Canadian jobs

VANCOUVER, BC, Sept. 16, 2024 /PRNewswire/ -- A new economic analysis conducted by MNP, one of Canada's leading professional services and research firms, has found that Drax Group contributed $1 billion towards the Canadian economy and supported more than 3,000 jobs in 2023.

Independent analysis illustrates the positive impact of Drax's wood pellet operations

The study measured the economic impact of Drax's Canadian operations, which includes 10 pellet plants across British Columbia and Alberta, producing sustainable biomass wood pellets to generate renewable power in the UK and Asia.

"We take pride in the longstanding role we play in making Canada a renewable energy leader and we are grateful for the many employees, both our own and across our supply chain, for their dedication to building a strong clean energy workforce in communities across Canada," said Liezl van Wyk, Drax's Vice President of Northern Operations. 

The report also showed Drax's commitment to sourcing from local suppliers by purchasing nearly 75% of its goods and services from those based within the respective province of their operations, which further supports local jobs and economies. Of the purchases made from suppliers outside of the province, over 90% are from Canadian businesses.

"Canada has built a robust economy through smart policies supporting domestic production of renewable energy. We will continue to find new and innovative ways to further our sustainability efforts for the benefit of Canada's natural resources," said van Wyk.

The total employment supported by Drax's operations (3,101 jobs) is approximately equivalent to the employment supported by the construction of 1,447 new homes in Canada.

Thousands of jobs are supported by Drax's activities across Canada in a wide range of sectors including high-skilled manufacturing of industrial components, engineering and technical machinery and transportation, many of which are in rural communities.

For example, in the Entwistle and Burns Lake communities where Drax's pellet plants are located, Drax provides 26% and 18% of their total employment income.

"We commend the workers, policymakers and other stakeholders who help ensure energy security and economic growth, particularly during times of international instability," said van Wyk.

Companies such as local sawmills rely on Drax to purchase their residuals and by-products. The use of these materials by Drax also keeps them out of landfills and off forest floors, where they can become fuel for wildfires. The timber, forest and furniture industries, among many others, have been key collaborators in sourcing residuals and waste products for beneficial reuse by Drax.

"Our research demonstrates the economic impact that Drax Group has made to the Canadian economy, with their operations in Canada generating $372 million in GDP in 2023," said Susan Mowbray, Partner at MNP. "We also found that the economic activity generated by Drax's pellet plants, port terminals and corporate offices, has a positive impact on local communities across Canada."

View an executive summary and other highlights from the report here.

About Drax
Drax Group's purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology. Drax's around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information, visit http://www.drax.com/ca

About MNP
National in scope and local in focus, MNP is one of Canada's leading professional services firms — proudly serving individuals, businesses, and organizations since 1958. Through the development of strong relationships, MNP provides client-focused accounting, consulting, tax, and digital services. MNP's clients benefit from personalized strategies with a local perspective to fuel success wherever business takes them. For more information, visit www.mnp.ca.

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SOURCE Drax Group

FAQ

How much did Drax Group contribute to the Canadian economy in 2023?

According to the MNP report, Drax Group contributed $1 billion to the Canadian economy in 2023.

How many jobs did Drax support in Canada in 2023?

Drax supported more than 3,000 jobs in Canada in 2023, equivalent to the employment supported by the construction of 1,447 new homes.

What percentage of Drax's goods and services are sourced locally in Canada?

Drax purchases nearly 75% of its goods and services from suppliers based within the respective province of their operations in Canada.

How does Drax's operations impact rural communities in Canada?

Drax provides significant employment income in rural communities, accounting for 26% of total employment income in Entwistle and 18% in Burns Lake.

What environmental benefits do Drax's operations provide in Canada?

Drax's use of sawmill residuals and by-products keeps them out of landfills and off forest floors, reducing waste and potential fuel for wildfires.