Drax, Siemens to build biomass power plants

Drax, UK - Drax Group has entered into a joint development agreement with Siemens Project Ventures to build, own and operate three large dedicated biomass-fired generation plants in the UK. Ownership will be split 60% Drax and 40% Siemens.

The plants will have a total capacity of 900MW and will cost an estimated £2 billion, including ancillary biomass logistics and processing facilities, said a Drax announcement. The plants, it added, will use Siemens turbine technology, but Drax will be responsible for all biomass procurement and trading.

Two sites have already been confirmed, Immingham and Hull, where planning applications are underway. A number of options are said to be under consideration for the third unit, including land at Drax Power Station. Construction of the first plant is expected to commence in late 2010 and should be operational in 2014.

Once operational, the three 300MW plants will deliver baseload capacity generation and will mean that Drax will be responsible for supplying 15% of the UK’s renewable power and up to 10% of its total electricity. Each plant is expected to have a payback period of six years.

Commenting on the announcement, Dorothy Thompson, chief executive of Drax, said: “We believe our venture into dedicated biomass-fired generation underpins our commitment to reducing the carbon footprint of electricity generation from the continued, but necessary, reliance on fossil fuels, whilst delivering secure and reliable supplies of electricity.

Drax already produces power by co-firing biomass and is well advanced in its project to increase its biomass co-firing capability to 500MW by mid-2010, which will make Drax Power Station the largest biomass co-firing plant in the world.

Dr Wolfgang Bischoff, managing director of Siemens Project Ventures, commented: "We are pleased to be furthering our long-standing relationship with Drax and particularly pleased to be their partner in this new venture. We believe that the development of dedicated biomass plant will make a significant contribution to the renewable energy needs of the UK going forward and importantly help to address the challenge of climate change facing the sector."