UK Government Signs Contract With Drax

Drax confirms it has signed a contract with the UK Government for a low-carbon dispatchable CfD (Contract for Difference) agreement to cover all four biomass units at Drax Power Station over the period April 2027 to March 2031.

“We are pleased to have agreed to this new contract with the UK Government, which will support UK energy security into the 2030s and deliver a net saving for consumers compared to alternative sources of dispatchable generation,” the company states.

Drax will have an annual 6TWh generation collar. Under the agreement, Drax Power Station can step in to increase generation when there isn’t enough electricity, potentially avoiding the need to burn more gas or import power from Europe. When there’s too much electricity, Drax can turn down and help to balance the system.

Analysis from Baringa has indicated that the short-term support for Drax Power Station is expected to result in a net saving for consumers of between £1.6-3.1billion (U.S. $2 to $4 billion) over the term of the agreement, compared to alternative sources of dispatchable generation.

The agreement includes enhanced biomass sustainability requirements, including ensuring that all biomass used at Drax Power Station is sustainably sourced and substantiated through monitoring, reporting, and verification requirements, including enhanced auditing of the biomass supply chain.

However, the contract means the annual demand for pellet fuel by the four Drax units will be significantly lower than it has been, by perhaps a few million tonnes.

Latest news

Enviva Announces Successful Emergence From Chapter 11

Enviva Announces Successful Emergence From Chapter 11Enviva has announced its successful emergence from Chapter 11 bankruptcy protection, marking a significant milestone in the company’s strategic transformation. Enviva’s Plan of Reorganization was confirmed by the...

read more

New From Tigercat: 6500 Chipper

New From Tigercat: 6500 ChipperTigercat has officially launched 6500 chipper after more than a year of successful field operations involving multiple retail units. The 6500 is a heavy-duty down-swing drum chipper designed for high production and maximum flexibility....

read more

Colorado Biomass Power Plant Set For Auction

Colorado Biomass Plant Set For Auction Eagle Valley Clean Energy in Gypsum, Colo. filed for bankruptcy in spring 2024, after the facility closed abruptly in November. Officials report an Illinois real state company has the leading bid to acquire the facility and will...

read more

Marubeni Starts Up Japanese Power Plant

Marubeni Starts Up Japanese Power Plant Officials with Marubeni Corp. recently announced the completion and startup of its new biomass power plant in Tahara City, Aichi Prefecture, Japan, as of late November. The wood-fired Aichi Tahara Biomass Power Plant has a 74 MW...

read more

Find Us On Social

Subscribe to Our Newsletter

Wood Bioenergy News Online hits the inboxes of subscribers in the wood-to-energy sectors.

Subscribe/Renew

Wood Bioenergy is published and delivered worldwide 6 times per year. Free to qualified readers in the U.S. Subscribers outside the U.S. are asked to pay a small fee.

Advertise

Complete the online form so we can direct you to the appropriate Sales Representative.