How carbon-cutting Drax manages currencies and credit
Interview: UK power giant uses option selling – and other tactics – to create hedging headroom
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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