Calls mount for Drax chief to be sacked after billionaire brands biomass firm 'toxic as tobacco'

Billionaire investor Louis Bacon has called for the chief executive of Drax Group to be sacked, saying Britain's largest biomass power station is "as toxic as working for tobacco" and describing the company as an "environmental and ethical calamity." The appeal came in a letter to the company published Sept. 9, 2025, days after a City watchdog said it would open an investigation into the sourcing of wood pellets used at Drax’s North Yorkshire plant.

Drax said its board has "full confidence in Will Gardiner," who received a reported £2 million bonus this year. Bacon, founder of Moore Capital, criticized the company’s practices and the level of taxpayer support it receives, saying government subsidies were required because the plant was "hopelessly inefficient." Drax received about £869 million in subsidies last year, according to figures cited by Bacon.

The dispute adds to regulatory and public scrutiny of Drax, which was fined £25 million last year by Ofgem for failing to report accurate sustainability information about the sourcing of its wood pellets. Campaigners and some scientists have long questioned whether large-scale burning of imported wood pellets should be classed as renewable, arguing that the carbon accounting and sourcing practices can undermine claimed climate benefits.

The City watchdog did not specify the scope of its probe in the statement that preceded Bacon’s letter. Drax’s North Yorkshire site, which converts wood pellets to electricity, has been the focal point of debate over the sustainability of biomass as part of the country’s power mix. Critics say emissions from pellet production, transport and combustion, and the sourcing of feedstock, can make biomass a less effective means of reducing greenhouse gases than portrayed.

Drax has defended its operations, saying it complies with regulatory requirements and that its pellets are sourced and managed to meet sustainability standards. In response to Bacon’s letter, the company reiterated the board’s support for Gardiner and noted previous steps taken to improve reporting and oversight following the Ofgem sanction.

The controversy comes after Energy Secretary Ed Miliband agreed to extend subsidies for biomass power in a policy decision that has drawn criticism from environmental groups and some industry observers. Supporters of biomass contend that sustainably sourced wood can provide reliable, low-carbon electricity and help balance variable renewable generation, while opponents say continued subsidies risk propping up high-emission practices and diverting public funds from cleaner alternatives.

Moore Capital’s request for Gardiner’s dismissal invoked the reputational damage Bacon said employees and stakeholders face, asserting that association with Drax could be harmful to staff careers. The letter also highlighted the company’s recent executive pay decisions amid the ongoing regulatory scrutiny.

Drax’s fine from Ofgem last year related to inaccuracies in sustainability reporting for imported wood pellets used to generate electricity. The penalty and the watchdogs’ inquiries have led to calls for clearer rules and tighter verification of biomass feedstocks, including land-use impacts and carbon accounting across the supply chain.

The debate over biomass in the United Kingdom forms part of a broader re-examination of how various fuels are classified in climate policy. Policymakers and regulators face pressure to reconcile energy security, decarbonization goals and the integrity of subsidy schemes, while companies operating at scale confront investor scrutiny and potential legal and financial consequences from regulatory findings.

In 2023, media and business ties around Moore Capital received attention when Daily Mail and General Trust backed the launch of a venture fund tied to the firm, a detail cited in commentary around the latest dispute. Drax has said it will continue to engage with regulators and stakeholders as inquiries proceed.

The City watchdog and Drax did not immediately respond to requests for further comment beyond the statements already released. The outcome of the investigation and any subsequent regulatory action could influence ongoing policy debates about the role of biomass in the UK energy system and the standards applied to companies that rely on imported feedstocks for power generation.