Russ Mould, investment director at AJ Bell, said: “Dark clouds have cleared for Drax after regulators concluded a probe into its reporting around the sourcing of pellets for biomass plants without taking further action.
“The market reaction suggests investors were unsurprised by the news and an initial relief rally fizzled out swiftly.
“Question marks over Drax’s sustainability credentials – particularly in relation to its biomass operations – have loomed over the business for some time.
“The acquisition of Bluefield Solar will diversify Drax’s energy mix by moving into solar and wind, and with the FCA investigation behind it, the company will hope to push on as a leading participant in the UK’s green energy push.”
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