Archives: Press Release

Analysis: Delays to building new UK power generation creates energy security ‘crunch point’ in 2028

27 February 2024

Press releases
  • By 2028 the UK’s demand for power is set to exceed secure dispatchable and baseload capacity by 7.5GW at peak times
  • “Crunch point” is a result of delays in bringing new generation on to the system, increasing demand for power and upcoming retirement of existing assets
  • Shortfall would leave UK more dependent on intermittent domestic and international generation
  • Mitigation includes extending the use of existing nuclear and dispatchable generation, including biomass, and supporting reduction in peak demand

New independent analysis by Public First, ‘Mind the gap: Exploring Britain’s energy crunch’, commissioned by Drax Group (Drax), reveals that the UK will hit an energy security “crunch point” in 2028.

Public First’s research finds that in 2028 a perfect storm of an increase in demand, the retirement of existing assets, and delays to the delivery of Hinkley Point C will culminate in demand exceeding secure dispatchable and baseload capacity by 7.5GW at peak times.

This shortfall is more than three times the secure de-rated power that Sizewell C will be capable of providing to the system when completed – 2.5GW – and nearly double the gap in 2022 (4GW). Uncertainty for biomass generators, which contribute over 3GW of secure dispatchable power, risks compounding the shortfall by nearly 50%.

The analysis also shows that over the next five years the headroom between secure total supply and peak demand is tightest in 2028. This is when total de-rated capacity is expected to be just 5GW higher than demand in peak times – this represents a significant reduction (c.-40%) from the average expected headroom across 2024-2027 (8.5GW).

The scale of the energy crunch will play out when National Grid ESO runs its T-4 Capacity Market Auction to procure sufficient power generating capacity to keep the lights on in 2027-28. The margin between target capacity the ESO wants to secure (44GW) and how much generation has entered the auction (43.4GW) is the tightest it has ever been since the auctions started ten years ago.

The research underscores that energy security will be a key issue in the next Parliamentary term. Without additional action taken to make up the shortfall, the UK will be more dependent on intermittent power from international energy interconnectors and renewables like wind and solar.

The report states building additional new capacity is unlikely to have a material impact in time and that to deliver certainty the Government should:

  • Extend the use of existing baseload generation assets which provide secure capacity, including nuclear plants scheduled to retire, and agree transitional arrangements for biomass operators that plan to install bioenergy with carbon capture and storage (BECCS) technology.
  • Work to reduce peak demand by encouraging flexibility and installing more home insulation.

Richard Gwilliam, Drax Group’s UK BECCS Programme Director, said:

“Delivering energy security is a critical and longstanding challenge for all governments. The need to maintain it while tackling climate change and rapidly decarbonising economies makes the issue all the more acute.

“This research demonstrates the UK is facing a power generation crunch point, with demand set to outstrip the supply of secure dispatchable and baseload capacity – leaving the UK reliant on intermittent forms of generation. To keep the lights on, part of the solution will be extending the lives of existing generation assets. Drax Power Station and our pumped storage and hydro power sites already provide secure, renewable electricity for millions of homes and businesses – but there’s more we can do.

“Drax plans to massively expand the generation capacity of Cruachan pumped storage power station in Scotland, some of which could be available to help bridge the power gap. Additionally, providing we secure the appropriate transitional support, our project to deliver two units of BECCS at our Selby site would also support energy security and decarbonisation through the crunch and well into the future.”

Daisy Powell-Chandler, Head of Energy and Environment at Public First, said:

“Setbacks in bringing new nuclear and offshore wind online, the retirement of generation assets and increasing power demand will create an energy crunch point in 2028. But the challenge of keeping the lights on is not set in stone: policymakers have a suite of levers they can pull to ensure that we have a more secure, diverse, and sustainable energy system in the future.”

As part of the research, Public First polled UK residents to better understand public perceptions of energy security following the Russian invasion of Ukraine.

The polling found that energy security remains high on the public agenda with 46% of those polled feeling that there was a medium-high risk of energy shortages this coming winter and almost 41% feel the risk of energy shortages is increasing.

ENDS

Notes to Editors:

About research:

The link to the report can be found here

 

Media contacts:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415

About Drax:

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

 

University of Sheffield’s Energy Innovation Centre partners with Drax to advance carbon capture research

20 February 2024

Press releases

Drax joins Boeing as the second founder member of the Energy Innovation Centre (EIC), launched by the University of Sheffield Energy Institute, which offers partners from industry access to two of the University’s newest world class research facilities. The first  – the Sustainable Aviation Fuels Innovation Centre (SAF-IC), is a first-of-its-kind facility in the UK that tests and certifies new sustainable aviation fuels. The second, the Translational Energy Research Centre (TERC), contains pilot-scale production facilities suitable for investigating different methods of carbon capture, utilisation and storage.

The partnership will use the first-of-their-kind technology available at TERC to carry out research and development into carbon capture and utilisation technologies, and to investigate the use other routes to decarbonise and defossilise industry, including renewable natural gas, hydrogen, battery storage and new BECCS technologies.

In particular, Drax will look at BECCS, a process in which carbon dioxide from using biomass as an energy source, such as wood pellets or agricultural residues, is captured and stored. Because plants absorb carbon dioxide from the atmosphere, the process results in negative emissions.

Access to the equipment at TERC, including the first-of-its-kind Molten Carbonate Fuel Cell, and a grate-fired biomass boiler which enables studies into BECCS, will mean Drax can carry out pilot-scale testing on some of the most cutting-edge carbon capture rigs in the UK.

Drax is the second largest producer of sustainable biomass globally, and its biomass power station in North Yorkshire is the UK’s single-largest source of renewable power by output.

The new partnership with TERC aims to further demonstrate and understand the opportunities for new forms of energy  and application of BECCS in the UK’s energy and industry landscapes.

Prof. Mohamed Pourkashanian, Managing Director of the Energy Innovation Centre:

“We are excited to welcome Drax as a founding member of the EIC. Drax’s commitment to furthering renewables and other low-carbon sources of energy make them an ideal partner for driving research and development in these areas.

“Combined with the expertise of the researchers at TERC, we hope Drax’s work within the EIC will lead to impactful, practical applications of innovative processes and technology. We look forward to working with Drax and to the continued growth of the EIC.”

Jason Shipstone, Drax’s Chief Innovation Officer, said:

“This new partnership between Drax and the University of Sheffield is hugely exciting for the carbon removals sector. The incredible facilities, and the global academic excellence of TERC, will enable Drax to innovate further as we look to deploy BECCS technology at scale in the coming years.

“Governments around the world are increasingly turning to BECCS in the fight against climate change as it is the only technology which can simultaneously remove carbon dioxide from the atmosphere while generating dispatchable renewable electricity.”

Media contacts: 

Aidan Kerr
Senior Media Manager
E: [email protected]
T: 07849090368

About Drax

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

To find out more information about the Drax Foundation go to the website www.drax.com/community

Drax partners with Molpus Woodlands to fuel BECCS operations in the Southeast US

31 January 2024

Press releases

Carbon removals and renewable energy company Drax Group has announced a new partnership with Molpus Woodlands Group (Molpus). The agreement will provide Drax with an option to purchase sustainably sourced woody biomass to fuel its bioenergy with carbon capture and storage (BECCS) operations in the US Southeast. 

Drax will have the option to take up to 1 million green tons per year of sustainably sourced fiber under a long-term fiber supply agreement. This supply will anchor Drax’s BECCS developments in the region, which will generate renewable baseload power to contribute toward US energy independence while permanently removing carbon dioxide from the atmosphere. 

“The renewable power produced through BECCS will contribute to a more diverse and resilient US power grid, while supporting hundreds of jobs across the US South, particularly in rural communities,” said Arabella Freeman, Senior Vice President of Biomass Strategy at Drax. “The sustainable fiber secured through this agreement with The Molpus Woodlands Group, a leading US forestry company, takes us one step closer to bringing Drax’s BECCS ambitions to life.” 

Sustainably sourced biomass – when paired with carbon capture and storage technology – is the only carbon negative technology that can permanently remove carbon from the atmosphere while simultaneously contributing to the diversity of the power grid. The fiber to be provided through Molpus meets Drax’s high sustainability standards, enabling the production of high-quality carbon dioxide removals (CDR) credits that can be purchased on the voluntary carbon market to help decarbonize other organizations and industries.  

Sustainable fiber is sourced from low-grade roundwood including forest thinnings and residues left over from timber harvesting. Low-grade roundwood is not suitable for sawmilling, and BECCS can provide a valuable new market for this forestry byproduct. 

This partnership with Molpus represents a key milestone toward Drax realizing its intent to become a global leader in carbon removals through the implementation of BECCS technology, with the goal of capturing 6 million metric tonnes of carbon a year in the US.  

Drax’s new and future BECCS projects could also result in hundreds of permanent jobs, with thousands more supported during construction and through the supply chain. Landowners will also be incentivized to practice sustainable forest management to improve the health and resilience of forests for generations to come. 

“Drax shares our passion for responsible forest management and, in bringing BECCS to the Southeastern US, will provide a valuable use for the fiber sourced from sustainable forest management practices, lumber production, and other related industries,” said Terrell Winstead, President and CEO at Molpus. “Together, we look forward to supplying value to the power grid, economy, environment, and local communities throughout the region for years to come.” 

To learn more about BECCS by Drax and our ambition to remove 6 million tons of carbon annually in the United States, visit https://www.drax.com/bioenergy-with-carbon-capture-and-storage-beccs/. 

To learn more about Molpus’ sustainable forestry practices, visit https://www.molpus.com/esg/. 

Media contact:  

Grant Stoker 
Communications Manager 
E: [email protected]
T: 318.376.3358 

About Drax   

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.   

Drax’s approximately 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information, visit www.drax.com.  

About Molpus Woodlands Group 

The Molpus Woodlands Group, LLC (Molpus), an SEC registered investment adviser, acquires, manages, and sells timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth individual investors. Molpus currently manages over 1.7 million acres of timberland investments in 15 states. It incorporates environmental, social, and governance (ESG) policies and practices into investment analysis and decision-making. It believes its strong ESG initiatives have positive implications for the environment and the future of Molpus. Molpus was founded in 1996 as a timber investment management organization and has a company legacy dating back to 1905. Molpus is one of the oldest timber-related companies in the United States. For more information, visit www.molpus.com. 

Drax Foundation supports Energy Sparks’ workshops in Yorkshire schools

Press releases

Staff from Drax’s Community Team also supported the workshops at the schools, helping pupils understand the effects that climate change is having on the planet and how, through reducing both their personal and school’s energy usage, they can help the environment. This included using creative examples of global warming, including how participants in a walking expedition to the North and South Poles would observe its effects on their trek.

The funding for the workshops comes from a £150,000 grant that the Foundation provided to the charity in 2023. This money has helped Bath-based Energy Sparks work with a further 240 schools across the UK by providing free access to their online energy management tool, education programme and support services.

These schools are located in the areas of the country where Drax Group operates: Yorkshire and the Humber, East Midlands, and East of England.

The funding is drawn from a pot of £2.5m that Drax Foundation ringfenced to enable UK schools and other non-profit organisations to install energy-efficient LED lights and solar panels, and deliver energy saving monitoring and education.

This year, the Foundation intends to provide additional funding for a range of measures to help schools reduce their energy consumption.

Shona King, Drax Group Head of Community, said:

“It was fantastic to participate in Energy Sparks’ workshops at Selby Community Primary School and Carlton Primary School. The climate challenge is the biggest issue we face and it is so important that young people learn how they can play a part in solving it by reducing both their personal and school’s energy consumption and cutting greenhouse gas emissions.

“That is why we are proud of the funding we provide to Energy Sparks. We have been working closely with the charity over the last few months and we can see first-hand the amazing work they do to support schools and pupils across the UK to cut their energy use, save money and support the fight against climate change.”

Dr Claudia Towner, CEO and Programme Director at Energy Sparks, said:

“We are delighted to be working with the Drax Foundation. Their funding means we can reach even more schools and pupils, and remove financial barriers to ongoing engagement for some of the existing schools using our services.

“Our work equips children and young people with the knowledge, skills, and tools to take measurable action in their school and wider community to reduce carbon emissions. We also enable school leaders, staff and communities to better understand and reduce their school’s energy consumption, save money and introduce wider measures to reduce their carbon footprint.”

Danielle Burton, Deputy Head at Carlton Primary School, said:

“The workshop allowed our School Council group to begin to look at our energy use in school and really opened our eyes to all the things we can do to reduce our usage. The children can’t wait to now take this on themselves and make a real difference.”

ENDS

Media contacts: 

Andy Low
Media Manager
E: [email protected] 
T: 07841 068 415

About Drax

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

To find out more information about the Drax Foundation go to the website www.drax.com/community

Drax to launch new business focused on becoming the global leader in large-scale carbon removals

25 January 2024

Press releases
  • The new business will oversee the development and construction of Drax’s new-build BECCS plants in the US and internationally and work with a coalition of strategic partners to focus on an ambitious goal of removing at least 6Mt of CO2 from the atmosphere annually
  • Senior energy infrastructure expert, Laurie Fitzmaurice, appointed as President for US-headquartered entity
  • New research published today by Foresight Transitions highlights the critical and cost-effective role that BECCS will play in aiding the United States in the delivery of its ambitious decarbonisation targets, as well as the technologies’ potential for job creation and regional economic development
  • Delivery of Drax Power Station BECCS project to continue to be handled by a UK-based team within Drax Group.

Global renewable energy company Drax Group plc has announced that it plans to establish a new independent business unit that will focus on becoming the global leader in delivering large-scale and high-integrity carbon removals.

The recent “global stocktake” at COP28 warned of the need to move faster to tackle the climate emergency. Large-scale carbon removals, including BECCS, are widely regarded by the scientific community as being critical to meeting this challenge. Working with coalition partners, the new business will offer a compelling proposition that combines Drax’s expertise in BECCS with the latest climate science and it will have an ambitious goal to remove at least 6Mt of CO2 from the atmosphere annually.

The business will be operationally separate within the Drax Group and headquartered in Houston in the United States. It will be led by Laurie Fitzmaurice, a senior energy infrastructure expert, who has nearly 30 years of experience in business development around the world, most recently for Amazon Web Services. Drax intends to formally launch this new entity in the United States later this year and Laurie will be supported by a highly skilled management team with a track record of success in tackling climate change through the development and delivery of innovative technologies.

Laurie and her team will take ownership for delivering the Group’s strategy for BECCS in the US and internationally as set by the board of Drax Group plc. It will have day-to-day responsibility for project execution including project development, delivery and marketing and sales of CDR credits and power and deployment of the Group’s multi-billion-dollar global BECCS capex programme. Laurie will also use her experience to collaborate with strategic partners drawn from the scientific, academic, consulting, investment and construction communities, in addition to civil society, so as to accelerate the global deployment of carbon dioxide removals technology.

In the UK, Drax’s plans for installing BECCS onto its Power Station in Yorkshire and its transformation into the world’s largest carbon removals facility have recently been granted planning approval by the UK Government. The Government has also recently recognised the important role which biomass can play in delivering the UK’s plans for Net Zero as well as supporting energy security. The delivery of this project will continue to be handled by a UK-based team within Drax Group.

New research published today by Foresight Transitions, a specialised consultancy led by a team from Imperial College, London, concludes that BECCS is necessary to help the United States achieve its ambitious decarbonisation scenarios, deliver a zero-carbon power system by 2035 and become net-negative by 2050. The report also highlights how deploying BECCS will not only enable deep emissions reductions but also has the potential to create thousands of jobs across multiple industries. The study concludes that the integration of BECCS is a cost-effective solution, outweighing other technologies, whilst strengthening system reliability across the three major regional grids in the U.S. (CAISO, MISO, and ERCOT) and reducing interconnection delays.

Laurie Fitzmaurice, said:

Laurie Fitzmaurice

“I am delighted to have been asked to lead Drax’s new US-based business at such a crucial point in the growth of the carbon removals industry. We have enormous potential to play a significant role in tackling climate change and improving the lives of millions of people across the world.

“By working with a coalition of partners, together we can accelerate the rate at which we are able to scale carbon removals and I encourage stakeholders who are keen to deliver on this ambition to work with us.”

Drax Group CEO, Will Gardiner, said:

Will Gardiner, Drax Group CEO

“The creation of this business brings to life years of hard work by many outstanding people across our Group and marks another step in Drax’s journey to enable a zero-carbon, lower-cost energy future. Our recent success is grounded in providing secure, renewable energy and our future is focused on playing a critical role in tackling climate change through the generation of secure, renewable power and the large-scale removal of carbon dioxide.

“I am excited to welcome Laurie as President of our new US-headquartered carbon removals business and look forward to working with her. We have a limited window of opportunity to capitalise on our first mover advantage and I am confident that the time is right for this approach.

“The new entity will bring focus and will scale the company’s ability to deliver carbon removals to organisations looking to reduce their carbon footprints. Delivering the ambitious targets will see the new entity become a leader in the growing carbon trading market.”

Professor Niall McDowell, author of the Foresight Transitions research, said:

“This study set out to quantify the role and value of BECCS in the context of decarbonising a variety of power systems in the USA. We consistently observed that BECCS provided substantial value through the cost-effective removal of CO2 from the atmosphere and also the baseload generation of renewable energy – a complement to other forms of renewable energy.”

Addressing the issue of climate change requires the widespread adoption of carbon removal technologies. The United Nation’s Intergovernmental Panel on Climate Change (IPCC) has projected that the world will need to remove between 0.5 and 9.5 billion tonnes of carbon dioxide annually via BECCS by 2050 to stay on course to limit global warming to the crucial 1.5°C target.

Last year’s COP28 conference proved to be another pivotal moment for global climate action with much of the discussion in Dubai focused on the critical need to accelerate the deployment of carbon dioxide removals. At this year’s World Economic Forum in Davos, the world’s attention was again focused on carbon removals and the announcement of our new company comes at an important moment in the collective fight against climate change.

Governments around the world have been increasingly adopting policies which are supportive of carbon dioxide removals and BECCS, including through the Inflation Reduction Act in the United States, Europe’s Renewable Energy Directive and the UK’s ‘Powering Up Britain’ energy security and Net Zero strategy and Biomass Strategy.

Analysis undertaken by consultancy FTI for Drax found that 92% of key decision-makers in sustainability and procurement roles in the US agree that carbon removals could have significant or moderate impact on combating climate change, and 69% believe it’s very important for U.S. companies to invest in low or negative emission technologies like carbon removal technologies.

The engineered carbon removals market has continued to grow exponentially over the last 12 months with 4.5Mt purchased in 2023 – a sixfold increase from last year, according to cdr.fyi. However, the total amount sold to date represents only 0.05% of the IPCC annual goal.

The role and value of BECCS in the USA

Read the Summary report here

Read the Full report here

ENDS

Media contacts:

Chris Mostyn, Group Head of Media Relations
E: [email protected]
T: 07548 838896

Editor notes

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 19 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

Drax responds to National Audit Office report on government’s support for biomass

24 January 2024

Press releases

A Drax spokesperson said:

“We welcome the National Audit Office’s (NAO) report which looks at the Government’s support for biomass.

“The NAO acknowledges the important role that sustainably sourced biomass has to play in addressing the climate crisis and displacing fossil fuels in the production of dispatchable electricity. It’s essential that sustainability reporting and criteria are robust and fit for purpose. This was also recognised in the Government’s biomass strategy published last year, which outlined a review which has already begun.

“We fully support that a review process should be carried out and look forward to playing our part and working with Government in this.

“We are committed to ensuring the biomass we source delivers positive outcomes for the climate, for nature and for the communities in which we operate.”

 

Read the report here – https://www.nao.org.uk/reports/the-governments-support-for-biomass/

 

Bridging Mechanism Consultation

18 January 2024

Press releases

Drax welcomes the UK Government’s announcement of the launch of 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 bioenergy with carbon capture and storage (BECCS).

The consultation, which closes on 29 February 2024, recognises the important role which biomass can play in delivering the UK’s plans for net zero as well as energy security, and sets out four models for consideration, including two variations of a CfD model.

Drax Group CEO, Will Gardiner said:

“The Government’s announcement is a welcome step forward in facilitating the deployment of large-scale BECCS and the development of CCUS Clusters in the UK.

“BECCS is currently the only credible large-scale technology that can generate renewable power and deliver carbon removals. The consultation is necessary to develop an appropriate mechanism that will ensure biomass power stations, like Drax Power Station, continue to play an important role in the UK’s energy security while transitioning to BECCS and helping the UK to meet greenhouse gas reduction targets. We will be responding to the consultation in due course.”

In December 2023, the UK Government reiterated its ambition to deploy at least 5 MtCO2/year of engineered greenhouse gas removals by 2030, potentially scaling to 23 MtCO2/year by 2035 and up to 81 MtCO2/year by 2050, and published its latest position on the design of a Power BECCS business model, which includes a 15-year CfD with a dual payment mechanism linked to both low-carbon electricity and negative emissions.

Emma Pinchbeck, Chief Executive of Energy UK, said:

“After planning permission was granted earlier this week, it’s very good news to see another important step in the progress of Drax’s carbon capture project.

“As the Climate Change Committee has made clear, BECCS will play an important role in further reducing emissions and reaching the goal of a Net Zero power system. Drax Power Station is the largest provider of renewable electricity in the country, fitting carbon capture technology to it could remove millions of tonnes of carbon dioxide every year and ensure it continues to play an important part in supporting the country’s energy security.

“As well as providing an economic boost to the area, the UK can also benefit from taking a leading role in the development and expansion of carbon capture technology which will be crucial to decarbonisation efforts right across the world.”

Drax believes that delivery of this ambition will require the development of at least one BECCS unit at Drax Power Station by 2030. Subject to the right investment framework, Drax plans to install carbon capture technology on two of the existing four biomass units. Each unit would be capable of capturing c.4Mt of CO2 per year.

A link to the consultation is copied below.
Transitional support mechanism for large-scale biomass electricity generators – GOV.UK (www.gov.uk)

Analysis by the consultancy Baringa (commissioned by Drax) shows that BECCS at Drax Power Station could save the UK up to £15bn between 2030 and 2050 and would help ensure that the station continues to provide important security of supply benefits. A link to the report can be found here.

Other developments

Separately, on Tuesday 16 January 2024, the UK Government approved the Development Consent Order (DCO) for plans to convert two biomass units at Drax Power Station to BECCS.

The DCO is another milestone for the project, providing planning consent for its development.

Enquiries:

Drax Investor Relations: Mark Strafford
[email protected]
+44 (0) 7730 763 949

Media:

Drax External Communications: Chris Mostyn / Andy Low
[email protected]
+44 (0) 7548 838 896

[email protected]
+44 (0) 7841 068 415

Website: www.Drax.com

END

UK Government approves planning application for BECCS at Drax Power Station

16 January 2024

Press releases

Drax Power Station currently has four biomass generating units and produces around 4% of the country’s power and 9% of its renewable electricity.

The DCO is a milestone for the project, providing planning consent for its development. BECCS is currently the only credible large-scale technology that can both deliver carbon removals and generate renewable power. Drax’s BECCS plans will enable Drax Power Station to continue to play a critical role in supporting UK energy security and would enable it to remove approximately 8 million tonnes of carbon dioxide per year when both units are fully operational.

Recent Baringa analysis found that delivering BECCS at Drax Power Station could, if implemented, save the UK £15bn in whole economy costs between 2030 and 2050 providing a more efficient, cost effective and straightforward pathway to meeting Net Zero targets than other potential options.

Drax Group’s plans to invest billions in its BECCS plans, subject to the right support from the UK Government. This could deliver up to 10,000 high-skilled jobs in the Humber at the peak of the project’s construction as well as safeguarding 7,000 direct and supply chain jobs.  Drax’s Group’s ambition is to source up to 80% of the materials and services it needs to develop BECCS in the UK from British businesses.

Will Gardiner, CEO Drax Group, said:

“The DCO approval is another milestone in the development of our BECCS plans, and demonstrates both the continued role that Drax Power Station has in delivering UK energy security and the critical role it could have in delivering large-scale carbon dioxide removals to meet Net Zero targets.

“We look forward to working with our supply chain and other partners over the coming years on the project which, when fully operational, will deliver secure renewable power and approximately 8 million tonnes of carbon dioxide removals per year.

“We welcome the ongoing development of policy support for BECCS and the anticipated launch of a consultation on a bridging mechanism for biomass generators to take them from the end of current renewable schemes through to BECCS operations.”

Selby MP Keir Mather welcomed the news noting the impact the announcement will have on the future of jobs in the local area:

“I’m very pleased to see that Drax have today secured planning permission to progress towards BECCS here in my constituency.

“As well as being a key local employer providing and securing hundreds of jobs in the Selby area, Drax will play a crucial role in Britain’s decarbonisation with this technology. I’m delighted that their almost 1000-strong workforce can now look forward with confidence following this news.”

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“This announcement is a major step forward for continuing the progress towards the decarbonised grid we need to reach net zero, with reliability and certainty to meet the needs of consumers and businesses. The project will unlock millions of pounds of contract opportunities for businesses across the North, as well as creating thousands of jobs, and cement the region’s place as the centre of UK energy security.”

ENDS

Notes to Editors:

A link to the Secretary of State for Energy Security and Net Zero’s decision letter can be found here: https://infrastructure.planninginspectorate.gov.uk/wp-content/ipc/uploads/projects/EN010120/EN010120-001660-Drax_BECCS_SoS_Decision_Letter.pdf

The decision letter makes clear that the Examining Authority was satisfied of the ability of the Proposed Development to achieve a 95% capture efficiency and that it was reasonable to treat biomass combustion emissions as zero rated. The Examining Authority concludes that over the whole life of the Proposed Development there would be negative GHG emissions due to carbon captured in the operational phase.

Media contacts:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415 

About Drax:

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

Analysis: development of BECCS at Drax Power Station projected to save UK £15bn and offset carbon emissions equivalent to all departing flights from Heathrow

Press releases
Drax Power Station cooling towers
  • Cost savings from carbon removals from BECCS at Drax are projected to be equivalent to £700m per year from 2030 to 2050, compared to other more complex carbon reduction measures
  • Annual amount of carbon captured by the project would be equivalent to taking 3 million cars off the road or cancelling all annual departing flights from Heathrow
  • BECCS at Drax is believed to be the only credible, large-scale carbon removals option that could deliver energy security and support the UK’s 2030 Greenhouse Gas Removals target
  • A bridging mechanism, a key enabler of BECCS, applied prior to the start of BECCS operations could save billions particularly if gas prices spike

New analysis by Baringa and commissioned by Drax Group (Drax) – The Value of BECCS at Drax Power Station – finds that Drax’s proposals for bioenergy with carbon capture and storage (BECCS) could save the UK up to £15bn in whole economy costs between 2030 and 2050.

This saving is equivalent to around £700m per annum, or £25 per household per year, and could help provide 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 electricity. Drax could initially convert two of its generating units to the technology at its North Yorkshire site.

Baringa’s findings demonstrate that without BECCS at Drax, meeting carbon reduction targets is more complicated and expensive for the UK Government and carbon savings would be needed in other sectors. Including, for example, investment in synthetic natural gas production facilities costing £8.5bn, committing to 735,000 more heat pumps beyond existing stretch targets, costing £5bn, amongst other measures.

Will Gardiner, CEO Drax Group, said:

“Climate change is the greatest challenge we face and the UK needs to use every option available to reduce carbon emissions and reach Net Zero as urgently as possible.

“This research shows BECCS at Drax Power Station offers the most cost-effective, straightforward and efficient way to help the country meet climate targets and could save billions of pounds, remove millions of tonnes of carbon from the atmosphere and support the UK’s energy security.

“To hit the UK’s annual carbon removal target, we need to build BECCS at Drax Power Station. Policy support for deploying BECCS grew in 2023, including the publication of the Biomass Strategy, and we believe that we will see the launch of a consultation on the bridging mechanism shortly.”

With around 7 GW of nuclear and coal capacity expected to close between 2024 and 2030, and growing uncertainty around timelines for new nuclear deployment, Baringa’s research underscores the critical role of Drax in delivering both cost effective energy security today and following potential BECCS conversion, in the future. The power station generates around 4% of the country’s power and 9% of its renewable electricity by output1.

The report also shows that the implementation of a bridging mechanism between the end of Drax’s renewable contracts in 2027 and the potential start of BECCS operations could save around £2bn over the period, if gas prices remained similar to the current winter period. This is the equivalent to reducing each UK household’s yearly energy bills by £5. Under Baringa’s model, if gas prices spiked over one winter period, as they did in 2021/22, then the mechanism could save households around £3.5bn in one winter period alone.

Drax investment in UK BECCS could also deliver up to 10,000 high-skilled jobs across the UK at the peak of the project’s construction, as well as safeguarding up to 7,000 direct and supply chain jobs.

ENDS

Notes to Editors:

 1 For the period Q2 2022 to Q1 2023.

Baringa Report: The research shows that the carbon removals that BECCS at Drax Power Station could deliver each year are approximately equivalent to:

  • Taking an additional 3 million internal combustion cars off the road
  • Or reducing the total number of departing flight passengers by 46 million, roughly the same as cancelling all departing flights from Heathrow
  • Or all UK households having 1.5 beef, lamb and dairy free days per week

The link to the report can be found here 

Media contact:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415

About Drax:

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com