Drax welcomes Government announcement on low-carbon energy generation

The Drax Power Station - playing an important role in cleaning up the Humber's carbon footprint.

THE Government today announced that it has agreed heads of terms with Drax on a support mechanism for low-carbon dispatchable generation post-2027.  

In its announcement the Government said that, from 2027, Drax and other eligible large-scale biomass generators will be supported via a low-carbon dispatchable CfD (Contracts for Difference). 

Drax Power Station is the UK’s largest energy generator and currently provides the grid with enough power for five-million homes – equivalent to every home in London, or Wales and Scotland combined. As we look to the future, this mechanism will help to keep the lights on in homes and businesses across the UK during a period when electricity demand is forecast to rise significantly. 

A Drax spokesperson said: "We support this approach. It is an investment in the UK's energy security, will result in a net saving for consumers, and is a vote of confidence in sustainable biomass electricity generation – both its importance to the UK’s overall energy mix and the potential decarbonisation opportunities presented by carbon removals."  

"Importantly, independent analysis by Baringa shows that this agreement provides net savings for consumers of between £1.6-£3.1bn over the term of the agreement (2027-2031), by avoiding the need to procure additional capacity and reducing the UK’s reliance on gas and interconnectors. 

"As we move towards the Government’s target of “Clean Power” by 2030, Drax and biomass will continue to play an important role as a renewable source of energy. Under this proposed agreement, when there is not enough electricity, Drax will step in to increase generation, avoiding the need to burn more gas or import power from Europe, and when there is too much electricity, Drax can turn down and help to balance the system. 

"At Drax Power Station, the mechanism will maintain the option for our Carbon Capture, Utilisation and Storage (CCUS) programme, which, subject to further policy development, and the right investment framework, could help facilitate billions of pounds of additional investment from Drax to transition the power station into the world’s largest carbon removal facility. This could remove 8Mt of carbon dioxide a year from the atmosphere, broadly equivalent to taking three million petrol or diesel cars off the road."