The Financial Conduct Authority (FCA) has opened an investigation into Drax Group.

The Company was notified on 26 August 2025 of an investigation into the company covering the period January 2022 to March 2024 relating to certain historical statements regarding Drax's biomass sourcing and the compliance of Drax's 2021, 2022 and 2023 annual reports with the listing rules and disclosure guidance and transparency rules.

The investigation, based on a whistleblower, will add scrutiny to Drax’s biomass operations that used subsidies to use imported wooden pellets in energy generation.

Classing biomass energy as renewable has been controversial, and climate groups have been sceptical of the claim. Yet it is less damaging than traditional fossil fuel for balancing energy needs when renewables are not performing.

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