British power generator, Drax Group (LSE: DRX), is confident that it will meet its objective of generating half of its power plant from biomass, despite new coal levies threatening short-term profits.

The Yorkshire, England-based plant is on track to see half of its generating capacity coming from wood pellets, replacing its previous coal-based power.
Drax power plant
In April Drax schedules the first of three units powered by Canadian-imported biomass to be operational.

A second unit is expected to be producing power by 2014, with the third planned to be online by 2016 as Drax rolls out an investment, costing in the range of $995m to $1.01bn, to transform itself into one of Europe’s leading burners of biomass.

The Financial Times reports that in spite of the prospect on higher carbon charges on Drax, the company benefited last year from falling international coal prices used to fuel one of Europe’s most efficient coal-fired stations.

Revenue for the company slipped slightly from $2.87bn in 2011 to $2.72bn last year but a fall in fuel costs allowed gross profits to rise from $766m to $782m.

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