British energy giant drax promised jobs and prosperity to struggling southern towns, but delivered pollution and poverty instead

A decade after British energy company Drax began opening wood pellet mills across Louisiana and Mississippi, the promised economic revival has failed to materialize in struggling former timber towns like Urania, Louisiana, and Gloster, Mississippi. Despite receiving over $75 million in tax breaks from Louisiana alone and millions more in incentives from Mississippi, Drax’s operations have employed far fewer workers than the traditional lumber mills they replaced while contributing to ongoing population decline and health concerns.

The company’s business model involves harvesting Southern forests to produce wood pellets that are shipped 8,000 miles to England, where they’re burned as “renewable” energy in former coal plants. This process has generated massive profits for Drax—climbing to $1.4 billion in 2024—while benefiting from over $14 billion in UK government subsidies. However, local communities have seen little of this prosperity trickle down.

In Urania, population has dropped by nearly half since 2010 to around 700 residents, with 40% living in poverty and average income at just $12,400. The town was recently labeled “the poorest in America.” Meanwhile, Drax’s mill employs only about 70-80 people compared to the 350+ jobs the previous lumber operation provided. Gloster faces similar challenges, with over 10% unemployment and household incomes half the state median.

Adding insult to injury, both communities report health problems from air pollution, noise, and dust from the mills. State regulators have repeatedly fined Drax for exceeding pollution limits and releasing harmful chemicals including formaldehyde and methanol. As one former mill worker put it, “Drax is a false solution”—extracting resources and profits while leaving behind environmental damage and unfulfilled promises.