Drax in biomass handling contract
24 Apr 2012
London – Drax has recently entered into a contract with the Shepherd Group for biomass-related construction works at its Yorkshire power station.
Drax is investing £50 million this year in new biomass storage and handling facilities and other plant modifications to support its existing co-firing facilities.
Shepherd is to assist in delivering the capability to produce up to 20% of the power station’s output from sustainable biomass.
In October 2011, the UK government announced its proposals for the future subsidy levels for renewable technologies. Drax has welcomed the creation of a new band for ‘enhanced co-firing’, but wants a “moderate uplift” of the proposed level to support its activities in this area.
Increasing the power station’s biomass co-firing capability to 20% of output will ensure that Drax qualifies for increased support under the new proposals.
However, further significant investment to transform Drax into a predominantly biomass fuelled generator is dependent upon appropriate regulatory support.
The UK government aims to publish its response to the consultation on future support levels in the Spring and legislate in the summer.
