Drax in £700m Scottish power deal to boost earnings in shift away from coal

Drax has bought a clutch of power plants from Scottish Power owner Iberdrola for £702 million in a further shift away from coal.

The portfolio, which includes the famous Cruachan plant in Scotland known as “hollow mountain” and featured in James Bond films, will boost Drax’s low carbon push.

The earnings from the portfolio are expected to be between £90 million and £110 million in 2019.

Chief executive Will Gardiner said: “This acquisition makes great financial and strategic sense, delivering material value to our shareholders through long-term earnings and attractive returns.”

Also in the portfolio is the Galloway Hydros plant, which was built in the 1930s and was Britain’s first hydro-electricity complex.

Drax owns the UK’s largest power station in Yorkshire and is moving to biomass from coal.