A recent economic analysis conducted by MNP, a leading Canadian professional services firm, has revealed that Drax Group made a significant impact on the Canadian economy in 2023.
The study found that Drax contributed $1 billion to the economy and supported more than 3,000 jobs across the country.
Drax's Canadian operations, which include 10 pellet plants in British Columbia and Alberta, produce sustainable biomass wood pellets for renewable power generation in the UK and Asia. The company's activities have created a ripple effect throughout the Canadian economy:
- Generated $372 million in GDP in 2023
- Supported 3,101 jobs, equivalent to the employment created by building 1,447 new homes in Canada
- Provided 26% and 18% of total employment income in Entwistle and Burns Lake communities, respectively
Drax has demonstrated a strong commitment to supporting local economies:
- Purchased nearly 75% of goods and services from suppliers within the respective provinces of their operations
- Over 90% of out-of-province purchases were made from Canadian businesses
This local sourcing strategy has further bolstered job creation and economic growth across various sectors, including high-skilled manufacturing, engineering, and transportation
Drax's operations have also yielded environmental benefits and fostered industry collaborations:
- Utilization of residuals and by-products from local sawmills and other industries
- Reduction of landfill waste and potential wildfire fuel
- Partnerships with timber, forest, and furniture industries for sourcing materials
Liezl van Wyk, Drax's Vice President of Northern Operations, emphasized the company's commitment to Canada's renewable energy sector and sustainable practices. "We take pride in the longstanding role we play in making Canada a renewable energy leader," van Wyk stated.
As Drax continues to expand its operations, the company aims to increase its positive impact on the Canadian economy while pursuing its goal of becoming carbon negative by 2030 through the use of bioenergy with carbon capture and storage (BECCS) technology.
This report highlights the significant role that renewable energy companies like Drax can play in driving economic growth, job creation, and environmental sustainability in Canada's evolving energy landscape.
