H1 consistent with FY consensus expectations First half EBITDA was slightly below our expectations but this was almost entirely due to phasing effects. Underlying performance and the biomass cost improvement trajectory supports FY consensus which stood at GBP377m prior to the results. Some upside to FY22-23 consensus Forward hedging was slightly better than we expected and taking into account the ongoing progress on reducing biomass cost and our expectation that 2022 should be free of COVID effects, we raise our 2022 estimates and now stand above consensus at GBP527m EBITDA and 52p EPS (consensus at GBP503m/49p). On the back of our power price assumptions, we forecast further growth in FY23 to GBP610m EBITDA and 68p EPS. The 10% increase in this year''s DPS is welcome but we assume that in the future preservation of capital ahead of a possible big capex program linked to BECCS is likely, so we leave our 2022 onwards DPS growth estimate of 5% p.a. unchanged. Net zero opportunity Drax''s ambition remains to have 2 biomass units with BECCS operational by 2030, and the planning application process has already started. Subject to indication of support from the UK government, Drax plans to launch a FEED study at the end of this year and be in a position to make an FID in 2023/24. The government''s competition to decide the sequencing of CCS projects and regional clusters has started with Track 1 announcements on final selection due October 2021 and a time when the Track 2 process will also be announced. Reiterate Outperform We maintain our price target of 495p, which values the opportunity of third-party pellet sales beyond 2027 but not the optionality from BECCs.