StockMarketWire.com - Power producer group Drax said it would stop producing coal in 2021 amid efforts to transform the business and become a carbon negative company by 2030.

The closure of the two coal units was expected to involve one-off closure costs in the region of £25-to-35m, in the period to closure and to result in a reduction in operating costs at Drax power Station of £25-to-35m, per year once complete, the company said.

Drax also expected to cut about 200 to 230 jobs from April 2021.

'Commercial coal generation is expected to end in March 2021, with formal closure of the coal units in September 2022 at the end of existing capacity market obligations,' the company said.

The deadline to end coal production by 2021 was ahead of the UK's 2025 deadline.



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