Drax Group PLC has achieved significant milestones in its plans to implement bioenergy with carbon capture and storage (BECCS) at Drax Power Station. The UK Government has approved the Development Consent Order (DCO) for the conversion of two biomass units at Drax Power Station to BECCS. This approval is a crucial step for the project, enabling BECCS to remove approximately 8 million tonnes of carbon dioxide per year when both units are fully operational. Drax Group CEO Will Gardiner emphasized the importance of this approval, stating that it demonstrates the continued role of Drax Power Station in delivering UK energy security and its critical role in delivering large-scale carbon dioxide removals to meet Net Zero targets.
Additionally, new analysis by Baringa, commissioned by Drax, projects that the development of BECCS at Drax Power Station could save the UK up to 15 billion in whole economy costs between 2030 and 2050. This saving is equivalent to around 700 million per year or 25 per household per year, providing a more efficient pathway to meeting the UK's Net Zero targets. BECCS is currently the only credible technology that can create carbon removals while also supporting UK energy security by generating renewable energy. Without BECCS at Drax, meeting carbon reduction targets would be more complicated and expensive.
Furthermore, the UK Government has launched 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 the start of BECCS operations. This consultation recognizes the important role biomass can play in delivering the UK's plans for Net Zero by providing carbon-negative, secure renewable energy and sets out four models for consideration.
These developments mark an exciting start to 2024 for Drax Group PLC as it continues to advance its BECCS project, contributing to the UK's efforts to achieve Net Zero targets.