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Drax Slumps After UK’s Kwarteng Questions Reliance on US Biomass

  • Dependence on US pellets not sustainable, Kwarteng says in FT
  • Shares slide as much as 11%, the biggest drop since late May
Biomass fuel production in Drax Group Plc's power station near Selby, UK.

Biomass fuel production in Drax Group Plc's power station near Selby, UK.

Photographer: Simon Dawson/Bloomberg

Drax Group Plc fell the most in 11 weeks in London trading after UK Business and Energy Secretary Kwasi Kwarteng slammed the company’s use of US wood pellets for biomass production.

The shares sank as much as 11%, the most since late May, after Kwarteng said Drax’s reliance on US pellets isn’t sustainable and “doesn’t make any sense.” It’s another setback for the power producer, which is already under scrutiny following a complaint by environmental campaigners over its green credentials.