BREAKING NEWS: Drax to create world’s biggest biomass project

DRAX today signed a £50m contract to create the world’s largest biomass co-firing facility at its Yorkshire power station.

The deal between the power station at Selby, North Yorkshire, and power generation technology business Alstom is part of Drax’s commitment to significantly increase its renewable biomass output as part of plans to reduce carbon dioxide emissions and combat climate change.

Over the last five years, Drax has developed the capability to co-fire renewable biomass materials with coal and has set itself a  target to produce 10% of its output from co-firing, the equivalent output of around 500 wind turbines, which will reduce its emissions of CO2 by more than two million tonnes each year.

Co-firing, the blending and burning of renewable fuel derived from plants with coal to generate electricity, is a recognised carbon abatement technology that has the potential to reduce the emissions of CO2 from coal-fired power stations.

Construction work at the facility, which will be able to handle 1.5 million tonnes of biomass each year, is expected to start later this year and phase one of the project is set to be completed by the end of 2009.

The processing works will receive, handle, store and process various biomass materials ready for direct injection into the power station’s coal-fired boilers. Drax expects to award contracts for the direct injection equipment and the rail unloading facility in the next few months.

The completed project, which at 400MW is believed to be the largest biomass co-firing project in the world, is part of Drax’s commitment to tackling climate change through reducing its emissions of CO2 by 15%.

Drax is the UK’s largest electricity generator, producing 7% of total demand.

Dorothy Thompson, chief executive of Drax, said today: “Delivering significant fuel diversification and carbon abatement is central to our business strategy. Meeting our 10% co-firing target is key to achieving our goal of 15% carbon abatement and this contract represents a major milestone in the execution of our co-firing project.

“At Drax, we are only too well aware of the need to tackle climate change and we firmly believe that we are part of the solution. We have a role to play in the transition towards a low carbon economy whilst delivering reliable supplies of electricity.”

Patrick Fragman, managing director of French company Alstom, said: “Alstom recognises Drax Power Limited’s long term commitment to their continual reduction of CO2 and are very proud to be associated with the largest biomass co-firing project in the world. 

“This contract underpins Alstom’s position as world leader in delivering biomass co-firing solutions worldwide to contribute to the fight against climate change, in line with its clean power strategy.”

Law firm Pinsent Masons was the legal adviser to Drax on the deal.

In a separate interim management statement today, Drax said it expected its full year results to be “modestly” higher than expected thanks to the current conditions in the commodity markets.