$50m investment in Drax co-firing power station

Drax has announced that it has entered into a contract with the Shepherd Group (“Shepherd”) for biomass-related construction works at the Drax Power Station site.

Last month, Drax confirmed its plans to invest £50M this year in new biomass storage and handling facilities and other plant modifications to secure full benefit from its existing co-firing facilities.

The contract with Shepherd will assist in delivering the capability to produce up to 20 per cent of the power station’s output from sustainable biomass.

“The project will also generate wider opportunities for local people in terms of employment and skills training, and we will be maximising opportunities for local businesses, working closely with our supply chain partners throughout the build.”

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 Government aims to publish its response to the consultation on future support levels in the Spring and legislate in the Summer.

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