10:27 pm - February 4, 2026
Power company Drax has announced a major restructuring that will result in 350 redundancies as the firm pivots its strategy toward flexible generation and energy storage. The FTSE 250 company, which operates the UK’s largest power station in North Yorkshire, said the restructure is part of plans to build “a strong, resilient business for the future.” The Drax power station generates approximately 5% of the country’s electricity, predominantly from sustainable biomass.
The company has commenced a consultation process with affected staff in both Yorkshire and North America, according to statements released by the firm. The restructuring follows recent strategic announcements, including plans to establish a data centre at its Yorkshire site and the acquisition of battery energy storage projects worth more than £157 million.
Strategic Shift Toward Flexible Generation
Drax stated it is now focused on driving growth in its flexible generation business and creating new opportunities beyond 2031. The company recently signed a low-carbon dispatchable Contract for Difference (CfD) agreement, which officials say recognizes the important role the power station will continue to play in UK energy security through the 2030s. This strategic pivot also includes advancing future uses of sustainable biomass and repurposing existing infrastructure.
At the end of last year, the company announced plans to establish a data centre at its North Yorkshire facility, located between Selby and Goole. The centre could become operational as early as 2027, with Drax indicating it plans to allocate up to £2 billion for incremental investment, primarily in flexible and renewable energy projects.
Battery Storage Acquisitions
The restructuring comes after Drax struck a £157.2 million deal to acquire three battery energy storage system (BESS) projects. The sites are based in Marfleet in Hull, Neilston in East Renfrewshire, Scotland, and East Kilbride in Lanarkshire, Scotland. These acquisitions represent a significant expansion into energy storage technology, which plays a crucial role in balancing renewable energy supply.
Additionally, the battery storage investments align with the company’s broader strategy to support the energy transition while maintaining grid stability. Energy storage systems are increasingly vital as the UK moves away from fossil fuels toward intermittent renewable sources like wind and solar power.
Union Response to Drax Redundancies
Union representatives from GMB have strongly criticized the redundancy announcement, accusing the company of betraying its workforce. Deanne Ferguson, GMB senior organiser, said the firm cannot build a low-carbon future by making skilled energy workers redundant. She emphasized that Drax has received substantial public subsidies yet has “betrayed the workforce and the communities that have supported it.”
However, Drax emphasized that the restructuring is in no way a reflection of employee professionalism and commitment. The company stated it will support affected colleagues throughout the consultation process and work closely with unions and elected employee representatives during implementation. Officials stressed these changes are key to long-term success and continued commitment to deliver UK energy security.
Future of Biomass Operations
In contrast to the job reductions, Drax maintains that advancing future uses of sustainable biomass remains central to its strategy. The biomass operations at the Yorkshire power station will continue playing a significant role, though the company is adapting its organizational structure to accommodate changing market conditions. The firm’s strategy reflects broader industry trends toward diversification and flexible energy generation.
Meanwhile, questions remain about the timeline for implementing the restructuring and the specific departments most affected by the redundancies. The consultation process with affected staff is ongoing, and final decisions regarding the organizational changes have not been confirmed by company officials.
