Publication of Circular and Notice of General Meeting in relation to proposed acquisition of flexible, low-carbon and renewable UK power generation from Iberdrola
Selby, Yorkshire: Drax today announced it remained committed to fulfilling its current work on a Carbon Capture & Storage (CCS) feasibility and technology development project (FEED), but once completed, would not be investing further and will withdraw as a partner of Capture Power Ltd, the developer of the White Rose CCS project.
The two year project is being taken forward by the Capture Power partnership – made up of Drax, Alstom and BOC and is looking at the potential to capture up to 90% of carbon emissions from a new coal fired power station and safely store them beneath the North Sea. The project is due to conclude during the next 6-12 months.
Drax has also confirmed that while at that point it would cease to commit further investment, it will continue to make the site owned by Drax, along with the infrastructure at the Power Plant, available for the project to be built.
Drax Group Operations Director, and Capture Power Board Director, Pete Emery said:
“We remain fully committed to completing what we’ve signed up to – the completion of a study into the feasibility and development of world leading technology that could result in dramatic reductions in carbon emissions produced by power stations and heavy industry.
“We are confident the technology we have developed has real potential, but have reluctantly taken a decision not to invest any further in the development of this project. The decision is based purely on a drastically different financial and regulatory environment and we must put the interests of the business and our shareholders first.
“We will focus our resources on the areas which we can deliver best value, particularly working with Government to explore the potential for converting a fourth generating unit to run on sustainable biomass.
“Drax still believes this project has great potential and we have announced that the site at the Drax Power Plant, along with our existing infrastructure remain available for the project to be built.”
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About Drax Group plc
Drax Group plc is an innovative energy company that owns and operates the UK’s largest power station in Selby, North Yorkshire, typically providing some 8% of the UK’s electricity. A vital strategic asset, the Group is transforming itself into a major biomass fuelled electricity generator through its use of innovative technology and sustainably sourced biomass. The largest decarbonisation project in Europe is underway to provide the UK with cost effective, low carbon, and reliable renewable power.
The Group employs around 1400 people and also includes:
Drax Biomass, based in the US focused on the self-supply of some of its sustainable biomass requirements.
Haven Power, the Group’s retail arm, providing business electricity contracts that are simple, flexible and designed to customers specific requirements.
Billington Bioenergy, is one of the leading distributors of wood pellets for sustainable heating in the UK.
For more information visit www.drax.com