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 Plants Longleaf As Part Of NC Forest Restoration Project

Enviva has partnered with the Sandhills Prescribed Burn Assn. and Milliken Advisors to sustainably thin the loblolly pine on over 500 acres of Hoke Community Forest in preparation for the establishment of a longleaf pine savannah in North Carolina. On Saturday, December 3, 2022, more…

read more

Arizona Operation Changes Names

Arizona-based NewLife Forest Products has rebranded itself as Restoration Forest Products, LLC (RFOR). In addition to the name change, the company announced changes to its senior leadership team. “The new name more accurately represents what we do,” comments Ted Dergousoff, CEO of Restoration Forest Products, LLC…

read more

Biomass Methane Plant Approved In Interior BC

REN Energy International Corp (REN Energy) has received approval from the Regional District of Kootenay Boundary for the development of its renewable natural gas (RNG) facility in Fruitvale, British Columbia. According to REN Energy officials, the project will break ground in early 2023. The plant includes a production facility that will create…

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.