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Drax’s former top lobbyist has thanked a US hedge fund founder for his support as she reached a settlement with the FTSE 250 energy company over her employment tribunal claim.
Rowaa Ahmar said Louis Bacon, the billionaire founder of hedge fund firm Moore Capital Management, had provided her with “essential support throughout this challenging time” and was a “major reason I was able to bring this action”.
Bacon has been approached for comment but did not immediately reply.
Moore Capital had a short position in Drax worth 0.7 per cent of its shares as of July 26 last year, according to FCA data. The data shows that Moore stopped disclosing a short position above the 0.5 per cent threshold a few days later.
Ahmar had filed a claim for unfair dismissal, arguing she was ultimately let go from her role as head of public affairs after raising concerns internally about the energy company’s sourcing of biomass for power stations.
But more than a week after the tribunal case opened in London, and with chief executive Will Gardiner due to give evidence this week, both sides announced they had “reached a mutually agreeable position, without admission of liability” and were dropping the case.
In her statement this morning, Ahmar said: “I am pleased with this outcome.
“And I want to especially thank conservation philanthropist Louis Bacon, who has been a steadfast supporter of women around the world and who has provided me with the essential support throughout this challenging time. His unwavering support is a major reason I was able to bring this action.”
A joint statement from Drax and Ahmar added: “Ms Ahmar made protected disclosures. Those disclosures were the subject of independent investigations instigated by Drax as were other matters that Ms Ahmar raised about her employment.
“The independent investigation into the disclosures has been shared with the regulator who reached a determination that is already public.”
Ahmar raised her concerns in the wake of a BBC Panorama investigation broadcast in October 2022, which alleged Drax was cutting down primary forests in Canada and also using high quality wood for biomass.
Responding to the documentary at the time, Drax said the programme “sought to repeat . . . inaccurate claims about biomass” and that 80 per cent of the material used to make its biomass pellets in Canada came from sawmill residues while the rest was waste material.
In August 2024, it agreed to pay a penalty of £25mn into a voluntary scheme after Ofgem, the energy regulator, found it misreported “profiling” data about its biomass sourcing in the period April 2021 to March 2022.
However, Ofgem said it did not find any evidence to suggest Drax should not have been eligible for “renewables obligation” subsidies. Under the scheme, at least 70 per cent of the biomass burned has to be sustainable.
Drax is one of the UK’s largest energy companies and has been heavily subsidised in recent years to convert its coal-fired power station to run on biomass.
Bacon is one of the best known hedge fund managers in global macro, a strategy that makes bets on interest rates, equities, commodities and other assets on the back of economic trends. He returned capital to outside investors in his flagship hedge funds in 2019 after a period of difficult performance.
Additional reporting by Maisie Grice
