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U.K.-based energy giant settles with Mississippi agency after exceeding air pollutant limits

Drax Group
Drax opened its Gloster wood pellet production plant in 2016 (Photo by Drax Group)

A U.K.-based energy giant has reached a settlement with the Mississippi Department of Environmental Quality (MDEQ) after repeated instances of hazardous air pollutants coming from the company’s facility in Gloster.

The state agency had hit Drax Group with multiple notices of violations (NOVs) due to an increased presence of methanol in the air as well as a failure to timely conduct an emissions performance test by a certain deadline. 

Drax originally opened shop in Gloster in 2016, leading a long list of European companies that have chosen the southeastern U.S. to produce wood pellets made from trees. According to those in the industry, wood pellets are an eco-friendly alternative to burning coal, but environmental activists have contended that burning wood pellets is worse than fossil fuels, releasing 65 percent more CO2 than coal.

In the seven years since Drax inserted itself into the small Mississippi community, residents have repeatedly voiced concerns with what they say is a negative impact on the air quality and the overall health of those who live in the area.

Residents were not the only ones concerned with emissions from Drax’s Gloster plant. In 2020, the MDEQ fined the company from Selby, U.K., $2.5 million for releasing more volatile organic compounds into the air than its permit allowed.

Then, in March 2023, MDEQ issued another notice to Drax – which was operating with a minor source polluter permit – notifying the company that it had been exceeding the legal limit of hazardous air pollutants for the past year.

MDEQ executive director Chris Wells clarified to SuperTalk Mississippi News that the agency’s qualm with Drax is not the same as the Gloster community’s. However, both sides have validity as “public health trumps economic development.”

“The problem we have with the company is that they came in and asked for a minor source permit. They have failed to comply with those limits,” Wells said back in August 2023. “They have exceeded their permit limits, which is not a good thing. We don’t tolerate it, and we have taken enforcement against the facility more than once.”

According to company officials, Drax has since fully cooperated with the state agency and taken action to investigate the alleged violations. Leaders with the wood pellet producer will provide MDEQ information promptly upon the company’s discovery of what caused the reported breach in the permit limits.

As part of the settlement, Drax has agreed to pay MDEQ a civil penalty of $225,000, with $150,000 of that amount going directly to the state agency. The remaining $75,000 will go towards a Supplemental Environmental Project (SEP) to build a new dust suppression screen at the Gloster plant. Drax will also voluntarily invest more than the requirement with the total enhancement project estimated to cost $150,000.

“We care deeply about the safety of our people and the residents of the communities in which we operate, and we take our environmental responsibilities and compliance extremely seriously,” Matt White, the executive vice president of Drax’s North American operations, said. “Compliance is at the foundation of everything we do, and we have invested a lot of hours and resources with the goal of continuously improving our operations.”

Per a news release, Drax has been working with community stakeholders to help guide future community engagement and interaction. This year, Drax created a Gloster community advisory panel made up of community leaders and citizens to help inform the company’s future investments in the region. 

The move seemingly marks a shift in action from Drax, which is reported to have abandoned a scheduled meeting with concerned citizens just over a year ago due to a “scheduling conflict.”

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