Company in the news: Drax

Shares in the UK’s biggest coal-fired power station, Drax (LSE: DRX), tumbled by 13% last week. They had been quite popular up until then.

Investors seemed to like the company’s plans to convert three of its six power generating units from burning coal to biomass products, such as wood pellets. With lots of old coal power stations closing soon, Drax is well placed to make more money as Britain’s generating capacity becomes scarcer.

It was assumed that these three units would all qualify for a subsidy that would guarantee them a selling price of £105 per megawatt hour [...]

MoneyWeek magazine

Latest issue:

Magazine cover
A new dawn for energy

Our experts pick the stocks to buy

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

FREE REPORT:
What you should really do with your money (2014 Edition)


How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking