Commercial coal generation at Drax to end in 2021, group confirms

0
Drax Power Station out of CCS demo
Drax power station

The Drax power plant will cease commercial coal-fired power generation in March next year, four years ahead of the UK’s deadline to quit the fuel, the company has confirmed.

Once Europe’s largest coal-fired power station, coal accounted for only 3 per cent of the Yorkshire plant’s generation in 2019, rendered uneconomic by rising carbon prices. Drax has been burning mostly wood pellets imported by ship from the US in recent years, having begun its switch to biomass more than a decade ago.

Now the station will concentrate on developing its carbon capture and storage (CCS) operations.

Drax Group CEO Will Gardiner hailed removal of the residual rump of coal generation as a landmark “in our continued efforts to become a world-leading carbon-negative company by 2030”.

Drax still intends to hold two coal-fuelled turbines in reserve until September 2022 against the firm’s Capacity Market commitments. These were worth £68 million in 2019. In last month’s CM round, the firm took no commitment beyond that date due to the low clearing price.

Costs of the shutdown are budgeted at £35 million, but managers think it will save as much from annual operations. Up to 230 jobs will be lost. Consultations with unions will now follow.

Drax’s full statement is here.

Related stories:

Drax lands inertia contract

Drax gets consent for 299MW peaker

Drax CEO: Increasing volatility will boost value of flexibility

Drax completes Scottish Power deal

Drax and Iberdrola agree CM risk share to get deal done

Bad debt hits returns at Opus and Haven

Drax to trial CCS

Drax to convert fourth unit to biomass

New chief at Drax as Dorothy Thompson steps down

Drax rules out domestic energy retail but keen to eat b2b suppliers’ lunch

Drax halts CCS investment seeks support for fourth biomass unit

Click here to see if you qualify for a free subscription to the print magazine, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here