Drax Group has welcomed the UK government's announcement of further policy support for the development of carbon capture utilisation and storage (CCUS) clusters in the country. The government has also reiterated its ambition to deploy at least 5 million tonnes of engineered greenhouse gas removals by 2030, potentially scaling up to 23 million tonnes by 2035 and 81 million tonnes by 2050. The government has published its latest position on the design of a Power BECCS (Bioenergy with Carbon Capture and Storage) business model, which includes a 15-year Contract for Difference (CfD) with a dual payment mechanism linked to both low-carbon electricity and negative emissions.
Drax Group CEO, Will Gardiner, stated that the government's announcements are an important step forward in facilitating the deployment of large-scale BECCS. He also highlighted the potential of BECCS to deliver carbon removals while generating renewable power, and the critical role it can play in the UK's energy security and meeting its Net Zero targets. Gardiner added that installing BECCS technology at Drax Power Station would create and support thousands of jobs in the Humber region.
The UK government has provided updates on the Track-1 expansion and Track-2 cluster deployment. The government has agreed Heads of Terms with the operator of the East Coast Cluster CO2 transport and storage network and will consider the best time to launch an expansion process for the East Coast Cluster from 2024. The government has also confirmed plans for the assessment of an initial "anchor phase" of capture projects connecting to the Acorn and Viking clusters, targeting deployment in 2028/9, and the development of a "buildout phase" for additional projects to connect thereafter.
Drax is in discussions with relevant stakeholders in the Humber region about the potential of deploying BECCS at Drax Power Station. The company also expects a public consultation on a bridging mechanism to commence shortly.