Also in the news...

World must wake up to the dangers of biofuels, head of Kew Gardens warns
By Michael McCarthy, Environment Editor
Published: 09 September 2006
The world should wake up to the dangers of the mass production of biofuels, which are increasingly seen as a major solution to global warming, according to Professor Sir Peter Crane, director of the Royal Botanic Gardens, Kew.

Extensive production of biofuel crops, such as oil palms, could destroy remaining areas of rainforest and bring about a new cycle of worldwide intensive agriculture involving vast applications of artificial fertilisers and pesticides, and requiring enormous water resources, said Professor Crane, who as the head of Kew Gardens is the world's leading plant scientist.
Ref:  http://news.independent.co.uk/environment/article1431083.ece

"EUROPE'S biggest coal-fired power station, Drax, yesterday said it could generate up to one-fifth of its electricity from crops by 2009"

It 'could'.

But what it is actually doing - sueing the EU to try and up the amount of CO2 it can emit! Oh yes, it's also burning 0.25% biofuel, and managed to turn it's filters up and burn cleaner coal the week we were there.


GREENWASH BOLLOCKS

Drax must feel the need for a bit of counterspin..tee hee

and this from UKDaily mail>

DRAX, owner of europe's biggest coal-fired power plant, confirmed its resurrection from near bankruptcy 4 years ago with a £342 million cash return to shareholders.

but the shares suffered amid fears windfall profits from high energy prices could be short -lived.

chief executive DT admitted market wholesale prices look set to drop in the months ahead but refused to speculate about how earnings will be affected.

revenue from generation at drax's 4000 megawatt plant in selby NY, surged to £603 million from £366 million.

the company was pushed to the edge of bankruptcy in 2002 by a catastrophic slump in electricity prices, but the recent worldwide spiral in the cost of energy has led to a dramatic turnaround in the company's fortunes.

unlike other utilitiessuch as centrica or powergen, drax does not have to buy costly gas to make its power, yet it has benefited from SKY-HIGH electricity prices.

the company reported a first-half pretax profit of £317 million in the half year, up from £13 million previously. the stock re-listed at £5 in december and yesterday finished at £8.56, down £0.175.

analysts warned the GOLDEN ERA of high prices could prove short-lived, amid signsthat oil prices are losing TRACTION after reaching record highs earlier in the year.

the IEA yesterday lowered its world oil demand forecasts for 2006 and 2007 and said consumption may slow for the first time in 7 years. the price of crude is trading around $65, having reached a high of $78.40 in july.

drax is attempting to lock in high electricity prices by contracting as much of its output as possible for future years.

it has also struck a 5 year supply agreement with BGas owner centrica.

one analyst said: "the results were very good and they are contracting forward as AGGRESSIVELY as they can, locking in margins when prices are high now.

"if oil prices moderate and go back to lower levels you would have to think you have hit the TOP for the likes of drax.

the company which is the UKs largest producer of greenhouse gases faces additional uncertainties over the level of future CO2 emission allowances.

drax will pay an interim dividend of £0.04 a share and a special dividend of £0.80.

one of the big winners from the payout will be chairman GORDON HORSFIELD, who could rake in £3.8 millionon his holding of just under four and a half million shares.

for more DRAX news go to:
www.thisismoney.co.uk/drx

by sam fielding

VERBATIM-almost

well i never, whatever NEXT?