Billionaire Louis Bacon urges sacking of Drax chief amid watchdog probe and biomass controversy
Bacon brands the UK biomass generator 'toxic as working for tobacco' as the FCA examines wood pellet sourcing and past sustainability reporting
Louis Bacon, the American founder of Moore Capital, has called for the removal of Drax Group’s chief executive, Will Gardiner, saying the company has become an "environmental and ethical calamity" and is "as toxic as working for tobacco." Bacon published a scathing letter to Drax’s chair, Andrea Bertone, on Tuesday, days after Britain’s financial regulator said it would investigate the company’s disclosure on the sourcing of wood pellets used at its Yorkshire biomass plant.
Bacon accused Drax of "egregious" failings, criticised a reported £2 million bonus for Gardiner and said the company required government subsidies because its generation process was "hopelessly inefficient." Drax’s most recent annual report indicated the group received about £869 million in subsidies in the most recent year.
The Financial Conduct Authority said its inquiry will cover the period January 2022 to March 2024 and will examine "certain historical statements regarding Drax's biomass sourcing and the compliance of Drax's 2021, 2022 and 2023 Annual Reports" with City rules on transparency. Drax said it would "co-operate" with the FCA investigation.
Environmental groups and some scientists argue that large-scale biomass power, which produces electricity by burning wood pellets, can generate greater emissions than the coal it replaced and can damage sensitive ecosystems when sourcing involves cutting down forests. Drax was fined £25 million by Ofgem last year for not reporting accurate sustainability data about the sourcing of its wood pellets, a regulatory penalty cited repeatedly by critics.
Matt Williams, senior advocate for the Natural Resources Defense Council, said in response to recent developments that "there’s nothing low carbon about cutting down verdant American forests, shipping them hundreds of miles, and burning them in British power stations," adding that Drax has been the subject of criticism from multiple public bodies and media investigations.
Drax’s board responded to Bacon’s letter by expressing "full confidence in Will Gardiner," saying Gardiner has led a transformation of the group and delivered "record financial and operational performances." The company also noted that Moore Capital has previously held publicly disclosed short positions in Drax and that Bacon’s private charitable foundation has supported anti-biomass campaign groups.
The dispute also touches on internal complaints at Drax. Rowaa Ahmar, a former senior lobbyist for the company, was sacked after raising concerns about alleged "greenwashing" and the firm’s use of non-waste wood. Ahmar alleged in an employment tribunal that she was dismissed after defying orders not to disclose interim findings of an internal report that, her lawyers said, identified use of unsustainable material and misreporting to Ofgem. Drax denied those claims and reached a settlement with Ahmar days after the hearing began in March.
Moore Capital said it closed out a short position in Drax in July 2024. The hedge fund founder’s public rebuke follows a decision by the UK government, overseen by Energy Secretary Ed Miliband, to extend subsidies for biomass generation — a move that has prompted criticism from environmentalists who call for a phase-out of subsidy support for biomass electricity.
Biomass supporters argue that sustainable sourcing and regulations can make wood-based generation part of the transition away from fossil fuels, while opponents contend the scale of pellet demand and long transport distances undermine any climate benefits. The FCA inquiry, the Ofgem fine and continued scrutiny from NGOs and some investors underscore the competing assessments of biomass’s role in Britain’s energy mix.
The FCA has not publicly indicated a timetable for concluding its review. Drax said it will cooperate with regulators and reiterated confidence in its management and operations. The outcome of the FCA investigation and any further regulatory or legal actions could influence government policy, investor confidence and the broader debate over biomass power’s place in the UK’s net-zero strategy.