ENERGY giant Drax has underlined the value of its ‘hollow mountain’ energy storage facility in Argyll amid the fallout from the war in Ukraine.

Drax said the Cruachan pumped storage facility along with hydro schemes on Scottish rivers had continued to play an important role in ensuring the security of energy supplies in recent weeks.

The output that they can provide has helped reduce reliance on imports of gas, the price of which has surged on international markets following Russia’s assault on Ukraine.

READ MORE: North Sea gas field start up boosts UK supplies amid Ukraine war fallout

Prices leapt in Europe yesterday after Gazprom cut off supplies from Russia to Bulgaria and Poland, which had refused to pay for them in roubles.

In an update on first quarter trading Drax said: “In the UK, the Group’s biomass, hydro and pumped storage assets have continued to play an important role in security of supply, providing stability to the UK power system at a time when higher gas prices and interconnector availability have placed the system under increased pressure.”

Drax generates power from biomass at the giant plant in Yorkshire from which it takes its name. This used to rely on coal.

The Herald: Drax chief executive Will Gardiner by the Cruachan hydro storage facility in ArgyllDrax chief executive Will Gardiner by the Cruachan hydro storage facility in Argyll

The company bought the Cruachan plant and the Lanark and Galloway hydro schemes with a £700 million portfolio acquired from ScottishPower in 2018.

Chief executive Will Gardiner has made clear that Drax is prepared to invest heavily in increasing the capacity of Cruachan in the belief that it can play an important role in maximising the potential of renewable energy sources in the UK.

READ MORE: ScottishPower feels gas price impact as windfarm output drops

In February he told The Herald Drax could invest around £500 million in expanding Cruachan with the right official encouragement. The development it is considering would provide work for around 1,000 people.

Drax and SSE met energy minister Greg Hands last month to discuss potential policy reforms that could support investment in pumped storage hydro. SSE is working on plans for a development in the Higlands.

Cruachan can be used to store power for use when the output from windfarms is low. It features a hall inside Ben Cruachan which houses huge turbines that are powered by the movement of water from a reservoir in the hills to Loch Awe below. Water is pumped up to the reservoir in times of low demand.