How carbon-cutting Drax manages currencies and credit

Interview: UK power giant uses option selling – and other tactics – to create hedging headroom

 Lisa Dukes - Drax - 2 - Juno snowdon - web.jpg
Lisa Dukes: “Given the size of the portfolio... active management is very important”
Juno Snowdon Photography

There is no obvious connection between the port of Baton Rouge in Louisiana and the town of Selby in Yorkshire, England. But there is a thread – of commerce, carbon dioxide and currency hedging – linking the two.

The fields southeast of Selby are home to the UK’s largest power station. Originally a coal-fired plant, it began transitioning to wood pellets as a fuel source eight years ago, in an attempt to reduce its carbon emissions – the bulk of those pellets are shipped to the nearby

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