2024-10-18 06:09:29
A new economic analysis by Calgary, Alta.-based accountancy, MNP, has found Drax Group, a major consumer and producer of Canadian biomass, contributed $1 billion towards the country’s economy and supported more than 3,000 jobs in 2023.
The study measured the economic impact of Drax’s Canadian operations, which includes 10 pellet plants across British Columbia and Alberta, producing sustainable biomass wood pellets to generate renewable power in the U.K. and Asia.
The report showed Drax sourced nearly 75% of its goods and services from those based within the respective province of their operations. Of purchases made from suppliers outside of the province, more than 90% are from Canadian businesses.
Drax operations supported 3,101 jobs including high-skilled manufacturing of industrial components, engineering and technical machinery and transportation, many of which are in rural communities.
In the Entwistle, Alta., and Burns Lake, B.C., where Drax’s pellet plants are located, Drax provides 26% and 18% of total employment income.
Companies such as local sawmills rely on Drax to purchase their residuals and by-products. The use of these materials by Drax also keeps them out of landfills and off forest floors, where they can become fuel for wildfires. The timber, forest and furniture industries, among many others, have been key collaborators in sourcing residuals and waste products for beneficial reuse by Drax.
“Our research demonstrates the economic impact that Drax Group has made to the Canadian economy, with their operations in Canada generating $372 million in GDP in 2023,” said Susan Mowbray, MNP partner, in a release.
“We also found that the economic activity generated by Drax’s pellet plants, port terminals and corporate offices, has a positive impact on local communities across Canada.”
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