Drax identifies sites in £2bn biomass power stations project

DRAX, the UK's biggest coal-fired power station, has identified five potential sites for an ambitious £2bn project to build three biomass carbon-neutral power stations in the region.

The first site is expected to be sited alongside the existing Drax plant in Selby, the second is likely to be in Immingham, alongside the port, which leaves the third site yet to be decided.

Drax had identified a plant in Hull, but is now looking at two other potential sites.

Chief executive Dorothy Thompson said the group has five viable sites which need to be reduced to three.

“The UK really needs generation capacity, it really needs biomass," she said. “We plan to build three plants. We have five as an insurance policy."

Over 600 jobs will be created in the region if Drax decides it is in shareholders' interest to go ahead with the plans.

The three plants will generate 15 per cent of Britain's renewable power and will transform Drax from a single power station in Selby into a multi-site, multi-fuel power company producing 10 per cent of the UK's electricity needs.

The three sites are expected to be in Yorkshire as Drax is keen to keep its carbon footprint as low as possible.

If the first three sites go well, the group could build other biomass power stations around the country.

Ms Thompson said the group is committed to sourcing biomass from ethical and sustainable sources and the goal was to reduce greenhouse gas emissions by at least 70 per cent.

She was speaking yesterday as Drax announced better than expected results.

The group reported earnings before interest tax depreciation and amortisation (EBITDA) for the year of £454m, better than the expected £448m, but down from last year's £506m. Revenues rose 41 per cent to £1.8bn and the group proposed a final dividend of 38.3p per share, up from 17.7p last time.

The company, which was Britain's biggest carbon emitter in 2007, is aggressively pursuing its carbon abatement policy.

It cut carbon emissions per unit of electricity by 3 per cent last year compared to 2006 emissions rates – the equivalent to taking about 195,000 cars off the road.

However, overall carbon dioxide emissions rose slightly in 2008, to 22.3 million tonnes from 22.2 million tonnes in 2007, due to increased production.

Source: The Yorkshire Post