Vattenfall notes rise in operating profit from wind generation
The state-owned Swedish power company, Vattenfall, has announced a rise in underlying operating profits in the first quarter of 2018, compared to the previous year.
The company noted its profits from operating reached SEK1.04bn (US$120mn), a 20% rise from SEK858mn ($99mn) in 2016.
The firm’s net sales grew by 18% year on year, from SEK2.54bn ($293mn) to SEK3bn ($346mn).
It is anticipated the increase in sales and profits is due to new capacity added in 2017, especially hydropower, and higher electricity prices in Sweden.
In total, Vattenfall’s underlying operating profits have reached almost SEK9.4bn ($1.1bn), an 11% rise from the recorded SEK8.4bn ($970mn) last year.
Last year the company’s total net sales were SEK40bn ($4.6bn), but have now hit SEK 44.3bn ($5.1bn), a 10.7% increase.
“Renewable energy is today the most cost-effective newbuild alternative,” commented Magnus Hall, Chief Executive Officer of Vattenfall.
“We are showing that we are a leader in driving development forward.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.