Drax Group PLC has welcomed the UK Government's announcement of a consultation on a transitional support mechanism for large-scale biomass generators, including Drax Power Station, as they transition from the end of their current renewable schemes in 2027 to bioenergy with carbon capture and storage (BECCS). The consultation, which closes on 29 February 2024, recognizes the important role which biomass can play in delivering the UK's plans for net zero as well as energy security, and sets out four models for consideration, including two variations of a CfD model.
Drax Group CEO, Will Gardiner, expressed that "The Government's announcement is a welcome step forward in facilitating the deployment of large-scale BECCS and the development of CCUS Clusters in the UK." He emphasized the necessity of the consultation to develop an appropriate mechanism that will ensure biomass power stations, like Drax Power Station, continue to play an important role in the UK's energy security while transitioning to BECCS and helping the UK to meet greenhouse gas reduction targets. Drax plans to respond to the consultation in due course.
The UK Government has reiterated its ambition to deploy at least 5 MtCO2/year of engineered greenhouse gas removals by 2030, potentially scaling to 23 MtCO2/year by 2035 and up to 81 MtCO2/year by 2050. Drax believes that delivery of this ambition will require the development of at least one BECCS unit at Drax Power Station by 2030. Subject to the right investment framework, Drax plans to install carbon capture technology on two of the existing four biomass units, with each unit capable of capturing approximately 4Mt of CO2 per year.
Additionally, analysis by the consultancy Baringa, commissioned by Drax, shows that BECCS at Drax Power Station could save the UK up to £15bn between 2030 and 2050 and would help ensure that the station continues to provide important security of supply benefits. The UK Government has also approved the Development Consent Order (DCO) for plans to convert two biomass units at Drax Power Station to BECCS, providing planning consent for its development.
For further information, Drax Group PLC has provided contact details for investor relations and media inquiries.