Archives: Press Release

Drax Community Fund donates over £9k to Scottish organisations

15 April 2024

News
  • First round of funding from the Drax Community Fund will see donations given to 33 organisations across the UK.
  • This includes donations to six organisations in the Argyll and Bute and Glasgow areas, which deliver STEM education, skills development and local Council services.

Renewable energy leader, Drax Group has announced the support it will provide to community organisations local to its operations though its new Community Fund, launched in 2023.

The donations of £500 to £2,000 are for community-led projects which support STEM education and skills, enhance green spaces or improve communities local to its operations.

It has announced funding to five organisations in Argyll and Bute where Drax owns and operates Cruachan Power Station – a flexible pumped storage hydro facility within the hollowed-out mountain Ben Cruachan. Drax announced last year plans to build a new c.£500m underground pumped storage hydro plant at the site, that with the right support from the UK Government would create 1,000 jobs during construction. Additionally, Drax has donated to The Catherine McEwan Foundation in Glasgow, which helps people living with Crohn’s and Colitis access better treatment.

Ian Kinnaird, Director of Scottish Assets, Drax Group, said:

“Since the acquisition of Cruachan by Drax in 2019, our business has supported a range of initiatives and created apprenticeship opportunities for the local area. Linking us even closer with the communities we operate in and that many of our colleagues live within.

“Our new Community Fund has provided support to local primary schools, Oban Community Council and The Catherine McEwan Foundation. These donations will provide pupils with the latest technology, help with refurbishing buildings and contribute to school trips, all furthering our commitment to advancing STEM education in our local areas.”

The projects in Cruachan and Glasgow that will receive donations worth a total of £9,050, from Drax Community Fund, include:

  • The Catherine McEwan Foundation: Expanding opportunities for young people in the senior phase of secondary school living with Crohn’s disease or Colitis.
  • Lochnell Primary School: Purchasing DASH Robot, STEM equipment and additional ipads.
  • Oban Community Council: Funding local planning efforts around community engagement activities.
  • Home-Start Lorn: Helping to refurbish buildings and creating a family centre in Oban.
  • Oban High School: Funding a school rugby trip for the girls team to France.

Derek McEwan, Founder, The Catherine McEwan Foundation, said: “The Catherine McEwan Foundation is delighted to receive this support from Drax. Our scholarship is a unique initiative with incredible positive outcomes. To have this support means we can continue to support the education of young people living with Crohn’s & Colitis.”

Murray Hamilton, Principal Teacher of PE and HWB, Oban High School, commented: “We were delighted when we heard the support from Drax, it is a major boost to the girls’ fundraising. This is the first trip of its kind for a girls’ sports team at Oban High School; we are really proud of our girls and can’t wait to go to France and provide them with this opportunity. The support from Drax will help make it a truly memorable experience.”

Emma Rossiter, Primary 7 Principal Teacher, Lochnell Primary School, said: “The funding from Drax is game changing for us at Lochnell Primary School. We have been developing STEM opportunities within our curriculum. The Lego Spike Kits and iPads allow us to explore and develop our engineering and coding skills along with critical problem-solving skills and teamwork. Thank you Drax for making this possible.”

To find out more about the Drax Community Fund and how to apply for funding, go to the website.

Notes to editors:

Drax Foundation, launched last March and awards larger grants of up to £50,000 for established, non-project organisations.

Drax recently announced the Community Foundation has given £2.7m in charitable giving for regional programmes and grassroots projects globally, of which £1.3 million went to UK projects.

ENDS

Media contacts:

Andy Low, Media Manager
E: [email protected] 
T: 07841 068415

About Drax

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

Drax Foundation gives £2.7m boost to communities globally

27 March 2024

News
  • Drax Foundation and Community Fund has given £2.7m to support people living in communities where Drax operates, globally. 
  • The money was provided by the renewable energy company to organisations that help under-represented groups, advance gender equality and support indigenous communities.  
  • Initiatives which have benefitted from the funding included those which improve STEM education, access to green spaces and energy efficiency measures in schools.  

The Drax Foundation provided £2.7m of funding to build stronger communities for a net zero future, significantly boosting the support provided by the global renewable energy leader in 2023. 

The Drax Foundation’s Annual Review reports on the impact the funding has had in the communities Drax operates in, where it has helped non-profit organisations to improve access to STEM education, nature and community green spaces, as well as renewable energy and energy efficiency.   

Drax CEO, Will Gardiner, said: “It’s important that we give back to the communities in which we operate and I’m very proud of the work the Drax Foundation has done in its first year. The engagement with our communities and partners has had a positive impact for a lot of people. 

“We are passionate about supporting diverse organisations, to deliver STEM education for those who may not have traditionally had access. And by improving green spaces and energy efficiency in schools we’re making communities more sustainable. I look forward to seeing the continued support we provide to our communities through the Drax Foundation in the future.”

In 2023, the Drax Foundation: 

  • Provided just over a quarter of its grants for STEM projects, funding education and training for 70,300 children and 637 adults globally. 
  • Provided money to help 20,860 people to access community green spaces and to restore or protect 1,230 hectares of land.
  • Funded energy analysis tools and climate education at more than 200 UK schools in the communities where Drax operates.  
  • Installed LED lighting in 8 pilot schools, as part of a £4.5 million investment over three years to help UK schools improve their energy efficiency.  
  • Provided money for local foodbanks, community sports teams, resources for local schools and improved community buildings.  

In addition, Drax Group’s Communities in Crisis Fund supported seven disaster relief projects around the world.  

In the UK the Drax Foundation provided £1.3m of funding, including: 

Supporting STEM education in areas of low social mobility through its partnership with the organisation STEM Learning and the Glasgow Science Centre.    

Gill Collinson, Director of Strategy and Partnerships at STEM Learning in the UK said: “We are delighted with the generous funding awarded by the Drax Foundation. The partnership will help STEM learning’s mission to change the lives of thousands of young people by supporting teachers and introducing young people to inspiring role models and raising their aspirations.” 

Providing energy-efficient LED lighting in eight schools in the UK and provided 240 more with energy analysis tools and education to enable them to be more sustainable. This was part of a £4.5 million commitment over three years to help schools improve their energy efficiency. 

Energy Sparks, which provides online training programmes to help schools reduce their energy consumption, benefitted from £150,000 which has put 120,000 pupils through Energy Sparks climate awareness programmes.  

The Argyll & the Isles Coast and Countryside Trust was also granted funding to help them expand outdoor STEM learning to more children and established a native tree nursery as a key part of their new Woodland Enterprise Hub.   

In Canada the Drax Foundation provided £576,000 of funding, including: 

STEM workshops and mentoring partnerships with the Society for Canadian Women in Science and Technology (SCWIST) as part of its work to invest in girls and indigenous communities as future STEM leaders. Through this work over 470 women have participated in 57 STEM workshops and 24 women have participated in mentoring partnerships.  

JeAnn Watson, Director of SCWIST commented: “STEM skills are life skills, and with access to STEM knowledge, the youth of today can shape their own futures and chart a logical path in a rapidly changing world”.  

A three-year partnership with Science World to increase the educational opportunities for students in the most remote school districts and Frist Nations communities. So far 1,976 children have participated in the programme covering 16 schools in four communities.  

The University of British Columbia’s (UBC) Faculty of Forestry received £47,500 in grant funding supporting 316 children from underserved communities with access to bursaries. The programme called Wild & Immersive encourages children and young people to care for the environment through nature-based experiences.  

In the US the Drax Foundation provided £671,000 of funding, including: 

Community engagement projects focusing on local wildlife through a partnership with Houston Audubon in Texas.   

Pete Deichmann, Houston Audubon’s Land Director said: “With the generous support of the Drax Foundation, Houston Audubon can continue to lead the conservation action needed along the Upper Texas Coast to help protect our land as well as the migratory, breeding and resident birds that depend on us for habitat protection.” 

The Drax Foundation also partnered with Texas Alliance for Minorities in Engineering (TAME) providing £66,000 in grant funding which resulted in 160 students, the vast majority from a minority background, participating in STEM programmes in the state.  

Read the full Drax Foundation Annual Review here: https://www.drax.com/wp-content/uploads/2024/04/Drax-Foundation-Annual-Review_2023.pdf

ENDS 

Media contacts: 

Aidan Kerr
Senior Media Manager
E: [email protected]
T: 07849 090 368 

Editor notes 

The Drax Foundation was launched in March 2023 to provide grant funding for non-profit organisations that improve equitable access to STEM education, community green spaces, and renewable energy in regions where Drax operates in the UK and North America.    

Drax’s Community Fund was established to respond to the unique needs and opportunities in communities where the company operates, with donations to local community initiatives.  

About Drax  

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.  

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com 

Power generation:  

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.   

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.  

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.   

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets. 

Pellet production and supply:

The Group has 19 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year. 

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.  

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia. 

Customers:    

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.  

To find out more go to the website www.energy.drax.com 

Drax signs MoU with Harbour Energy and bp to explore options to transport and store CO2

11 March 2024

News

Drax Group (Drax) has agreed a memorandum of understanding (MoU) with Viking CCS, the Humber-based CO2 transportation and storage network led by Harbour Energy, together with non-operated partner bp, to assess options to transport and store CO2 in the Humber region.

The MoU will see the companies work together on an early pipeline study to explore options that could connect Drax Power Station to the depleted Viking gas fields in the southern North Sea.

Once operational, and subject to final investment decision, the Viking CCS cluster could capture and store up to 10 million tonnes of UK emissions per annum by 2030 and up to 15 million tonnes by 2035.

Richard Gwilliam, UK BECCS Programme Director at Drax, said:

“Viking CCS has a compelling vision for delivering the decarbonisation of the Humber. Their plans could facilitate significant investment into the region, create thousands of new highly skilled green jobs and ensure that the Humber continues to play an important long-term role in supporting the UK’s energy security.

“We are excited about working with Viking CCS through this new MoU which will explore how BECCS at Drax Power Station could connect to their pipeline. BECCS is currently the only credible large-scale technology that can generate renewable power and deliver carbon removals.

“When operational, a BECCS unit at Drax Power Station could remove four million tonnes of CO2 each year which is 80% of the UK Government’s ambition of delivering five million tonnes of engineered greenhouse gas removals by 2030. We believe the technology will play a substantial role in combating climate change, reducing the UK’s CO2 emissions and meeting its Net Zero goals.”

Graeme Davies, Viking CCS Project Director at Harbour Energy, said:

“The Humber is unique in the UK as the largest emitter of CO2 from existing industry and power generation and Viking CCS has the potential to put the Humber at the heart of the UK’s net zero economy, protecting and creating thousands of jobs, providing billions of pounds of investment across the full capture, transport and storage chain.

“We look forward to exploring the potential for the Drax BECCS plant to connect to Viking CCS in the future.”

ENDS

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

About Viking CCS

Led by Harbour Energy and with non-operated partner bp, Viking CCS is planning to develop the infrastructure to transport and store CO2 in secure offshore storage sites. Working with a wide range of emissions capture and infrastructure members, the project will create a CO2 capture, transportation and storage network targeting a reduction of 10 million tonnes of UK emissions per annum by 2030 and up to 15 million tonnes by 2035.

Located in the Humber, the UK’s most industrialised region and largest emitter of CO2, the project is central to establishing a world leading CCS industry in the UK and meeting the Government’s net zero emissions targets. Viking CCS will also reuse existing pipelines and utilise decommissioned gas fields in the Southern North Sea to provide UK industries with a competitive option for the transport and storage of their CO2 emissions.

For more information, please visit our website www.vikingccs.co.uk.

About Harbour Energy

Harbour Energy is the largest independent UK oil and gas producer. We have a leading position in the UK as well as interests in Indonesia, Vietnam, Mexico, and Norway.

Our strategy is to continue to build a global, diversified oil and gas company focused on safe and responsible operations, value creation and shareholder returns.

Across our operations we are committed to achieving our goal of net zero greenhouse gas emissions by 2035 with respect to our scope 1 and scope 2 emissions.

In addition, we are well positioned to use our existing skills and infrastructure to help deliver the UK’s CCS goals and more broadly the country’s emissions reduction targets.

About bp

bp intends to invest up to £18 billion in the UK’s energy system by the end of 2030, demonstrating bp’s firm commitment to the UK, and helping the country to deliver on its bold ambitions to boost energy security and reach net zero. As one of the largest oil and gas producers in the UK, bp intends to continue investing in North Sea oil and gas, while driving down operational emissions. bp is also in action on a range of lower carbon energy investments in the UK, which are expected to bring jobs and develop new skills and capabilities.

 

Analysis: Delays to building new UK power generation creates energy security ‘crunch point’ in 2028

27 February 2024

News
  • By 2028 the UK’s demand for power is set to exceed secure dispatchable and baseload capacity by 7.5GW at peak times
  • “Crunch point” is a result of delays in bringing new generation on to the system, increasing demand for power and upcoming retirement of existing assets
  • Shortfall would leave UK more dependent on intermittent domestic and international generation
  • Mitigation includes extending the use of existing nuclear and dispatchable generation, including biomass, and supporting reduction in peak demand

New independent analysis by Public First, ‘Mind the gap: Exploring Britain’s energy crunch’, commissioned by Drax Group (Drax), reveals that the UK will hit an energy security “crunch point” in 2028.

Public First’s research finds that in 2028 a perfect storm of an increase in demand, the retirement of existing assets, and delays to the delivery of Hinkley Point C will culminate in demand exceeding secure dispatchable and baseload capacity by 7.5GW at peak times.

This shortfall is more than three times the secure de-rated power that Sizewell C will be capable of providing to the system when completed – 2.5GW – and nearly double the gap in 2022 (4GW). Uncertainty for biomass generators, which contribute over 3GW of secure dispatchable power, risks compounding the shortfall by nearly 50%.

The analysis also shows that over the next five years the headroom between secure total supply and peak demand is tightest in 2028. This is when total de-rated capacity is expected to be just 5GW higher than demand in peak times – this represents a significant reduction (c.-40%) from the average expected headroom across 2024-2027 (8.5GW).

The scale of the energy crunch will play out when National Grid ESO runs its T-4 Capacity Market Auction to procure sufficient power generating capacity to keep the lights on in 2027-28. The margin between target capacity the ESO wants to secure (44GW) and how much generation has entered the auction (43.4GW) is the tightest it has ever been since the auctions started ten years ago.

The research underscores that energy security will be a key issue in the next Parliamentary term. Without additional action taken to make up the shortfall, the UK will be more dependent on intermittent power from international energy interconnectors and renewables like wind and solar.

The report states building additional new capacity is unlikely to have a material impact in time and that to deliver certainty the Government should:

  • Extend the use of existing baseload generation assets which provide secure capacity, including nuclear plants scheduled to retire, and agree transitional arrangements for biomass operators that plan to install bioenergy with carbon capture and storage (BECCS) technology.
  • Work to reduce peak demand by encouraging flexibility and installing more home insulation.

Richard Gwilliam, Drax Group’s UK BECCS Programme Director, said:

“Delivering energy security is a critical and longstanding challenge for all governments. The need to maintain it while tackling climate change and rapidly decarbonising economies makes the issue all the more acute.

“This research demonstrates the UK is facing a power generation crunch point, with demand set to outstrip the supply of secure dispatchable and baseload capacity – leaving the UK reliant on intermittent forms of generation. To keep the lights on, part of the solution will be extending the lives of existing generation assets. Drax Power Station and our pumped storage and hydro power sites already provide secure, renewable electricity for millions of homes and businesses – but there’s more we can do.

“Drax plans to massively expand the generation capacity of Cruachan pumped storage power station in Scotland, some of which could be available to help bridge the power gap. Additionally, providing we secure the appropriate transitional support, our project to deliver two units of BECCS at our Selby site would also support energy security and decarbonisation through the crunch and well into the future.”

Daisy Powell-Chandler, Head of Energy and Environment at Public First, said:

“Setbacks in bringing new nuclear and offshore wind online, the retirement of generation assets and increasing power demand will create an energy crunch point in 2028. But the challenge of keeping the lights on is not set in stone: policymakers have a suite of levers they can pull to ensure that we have a more secure, diverse, and sustainable energy system in the future.”

As part of the research, Public First polled UK residents to better understand public perceptions of energy security following the Russian invasion of Ukraine.

The polling found that energy security remains high on the public agenda with 46% of those polled feeling that there was a medium-high risk of energy shortages this coming winter and almost 41% feel the risk of energy shortages is increasing.

ENDS

Notes to Editors:

About research:

The link to the report can be found here

 

Media contacts:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415

About Drax:

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

 

Drax Foundation supports Energy Sparks’ workshops in Yorkshire schools

31 January 2024

News

Staff from Drax’s Community Team also supported the workshops at the schools, helping pupils understand the effects that climate change is having on the planet and how, through reducing both their personal and school’s energy usage, they can help the environment. This included using creative examples of global warming, including how participants in a walking expedition to the North and South Poles would observe its effects on their trek.

The funding for the workshops comes from a £150,000 grant that the Foundation provided to the charity in 2023. This money has helped Bath-based Energy Sparks work with a further 240 schools across the UK by providing free access to their online energy management tool, education programme and support services.

These schools are located in the areas of the country where Drax Group operates: Yorkshire and the Humber, East Midlands, and East of England.

The funding is drawn from a pot of £2.5m that Drax Foundation ringfenced to enable UK schools and other non-profit organisations to install energy-efficient LED lights and solar panels, and deliver energy saving monitoring and education.

This year, the Foundation intends to provide additional funding for a range of measures to help schools reduce their energy consumption.

Shona King, Drax Group Head of Community, said:

“It was fantastic to participate in Energy Sparks’ workshops at Selby Community Primary School and Carlton Primary School. The climate challenge is the biggest issue we face and it is so important that young people learn how they can play a part in solving it by reducing both their personal and school’s energy consumption and cutting greenhouse gas emissions.

“That is why we are proud of the funding we provide to Energy Sparks. We have been working closely with the charity over the last few months and we can see first-hand the amazing work they do to support schools and pupils across the UK to cut their energy use, save money and support the fight against climate change.”

 

Dr Claudia Towner, CEO and Programme Director at Energy Sparks, said:

“We are delighted to be working with the Drax Foundation. Their funding means we can reach even more schools and pupils, and remove financial barriers to ongoing engagement for some of the existing schools using our services.

“Our work equips children and young people with the knowledge, skills, and tools to take measurable action in their school and wider community to reduce carbon emissions. We also enable school leaders, staff and communities to better understand and reduce their school’s energy consumption, save money and introduce wider measures to reduce their carbon footprint.”

Danielle Burton, Deputy Head at Carlton Primary School, said:

“The workshop allowed our School Council group to begin to look at our energy use in school and really opened our eyes to all the things we can do to reduce our usage. The children can’t wait to now take this on themselves and make a real difference.”

ENDS

Media contacts: 

Andy Low
Media Manager
E: [email protected] 
T: 07841 068 415

About Drax

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

To find out more information about the Drax Foundation go to the website www.drax.com/community

Bridging Mechanism Consultation

18 January 2024

News

Drax welcomes the UK Government’s announcement of the launch of a consultation on a transitional support mechanism for large-scale biomass generators, including Drax Power Station, as they transition from the end of their current renewable schemes in 2027 to bioenergy with carbon capture and storage (BECCS).

The consultation, which closes on 29 February 2024, recognises the important role which biomass can play in delivering the UK’s plans for net zero as well as energy security, and sets out four models for consideration, including two variations of a CfD model.

Drax Group CEO, Will Gardiner said:

“The Government’s announcement is a welcome step forward in facilitating the deployment of large-scale BECCS and the development of CCUS Clusters in the UK.

“BECCS is currently the only credible large-scale technology that can generate renewable power and deliver carbon removals. The consultation is necessary to develop an appropriate mechanism that will ensure biomass power stations, like Drax Power Station, continue to play an important role in the UK’s energy security while transitioning to BECCS and helping the UK to meet greenhouse gas reduction targets. We will be responding to the consultation in due course.”

In December 2023, the UK Government reiterated its ambition to deploy at least 5 MtCO2/year of engineered greenhouse gas removals by 2030, potentially scaling to 23 MtCO2/year by 2035 and up to 81 MtCO2/year by 2050, and published its latest position on the design of a Power BECCS business model, which includes a 15-year CfD with a dual payment mechanism linked to both low-carbon electricity and negative emissions.

Emma Pinchbeck, Chief Executive of Energy UK, said:

“After planning permission was granted earlier this week, it’s very good news to see another important step in the progress of Drax’s carbon capture project.

“As the Climate Change Committee has made clear, BECCS will play an important role in further reducing emissions and reaching the goal of a Net Zero power system. Drax Power Station is the largest provider of renewable electricity in the country, fitting carbon capture technology to it could remove millions of tonnes of carbon dioxide every year and ensure it continues to play an important part in supporting the country’s energy security.

“As well as providing an economic boost to the area, the UK can also benefit from taking a leading role in the development and expansion of carbon capture technology which will be crucial to decarbonisation efforts right across the world.”

Drax believes that delivery of this ambition will require the development of at least one BECCS unit at Drax Power Station by 2030. Subject to the right investment framework, Drax plans to install carbon capture technology on two of the existing four biomass units. Each unit would be capable of capturing c.4Mt of CO2 per year.

A link to the consultation is copied below.
Transitional support mechanism for large-scale biomass electricity generators – GOV.UK (www.gov.uk)

Analysis by the consultancy Baringa (commissioned by Drax) shows that BECCS at Drax Power Station could save the UK up to £15bn between 2030 and 2050 and would help ensure that the station continues to provide important security of supply benefits. A link to the report can be found here.

Other developments

Separately, on Tuesday 16 January 2024, the UK Government approved the Development Consent Order (DCO) for plans to convert two biomass units at Drax Power Station to BECCS.

The DCO is another milestone for the project, providing planning consent for its development.

Enquiries:

Drax Investor Relations: Mark Strafford
[email protected]
+44 (0) 7730 763 949

Media:

Drax External Communications: Chris Mostyn / Andy Low
[email protected]
+44 (0) 7548 838 896

[email protected]
+44 (0) 7841 068 415

Website: www.Drax.com

END

UK Government approves planning application for BECCS at Drax Power Station

16 January 2024

News

Drax Power Station currently has four biomass generating units and produces around 4% of the country’s power and 9% of its renewable electricity.

The DCO is a milestone for the project, providing planning consent for its development. BECCS is currently the only credible large-scale technology that can both deliver carbon removals and generate renewable power. Drax’s BECCS plans will enable Drax Power Station to continue to play a critical role in supporting UK energy security and would enable it to remove approximately 8 million tonnes of carbon dioxide per year when both units are fully operational.

Recent Baringa analysis found that delivering BECCS at Drax Power Station could, if implemented, save the UK £15bn in whole economy costs between 2030 and 2050 providing a more efficient, cost effective and straightforward pathway to meeting Net Zero targets than other potential options.

Drax Group’s plans to invest billions in its BECCS plans, subject to the right support from the UK Government. This could deliver up to 10,000 high-skilled jobs in the Humber at the peak of the project’s construction as well as safeguarding 7,000 direct and supply chain jobs.  Drax’s Group’s ambition is to source up to 80% of the materials and services it needs to develop BECCS in the UK from British businesses.

Will Gardiner, CEO Drax Group, said:

“The DCO approval is another milestone in the development of our BECCS plans, and demonstrates both the continued role that Drax Power Station has in delivering UK energy security and the critical role it could have in delivering large-scale carbon dioxide removals to meet Net Zero targets.

“We look forward to working with our supply chain and other partners over the coming years on the project which, when fully operational, will deliver secure renewable power and approximately 8 million tonnes of carbon dioxide removals per year.

“We welcome the ongoing development of policy support for BECCS and the anticipated launch of a consultation on a bridging mechanism for biomass generators to take them from the end of current renewable schemes through to BECCS operations.”

Selby MP Keir Mather welcomed the news noting the impact the announcement will have on the future of jobs in the local area:

“I’m very pleased to see that Drax have today secured planning permission to progress towards BECCS here in my constituency.

As well as being a key local employer providing and securing hundreds of jobs in the Selby area, Drax will play a crucial role in Britain’s decarbonisation with this technology. I’m delighted that their almost 1000-strong workforce can now look forward with confidence following this news.”

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“This announcement is a major step forward for continuing the progress towards the decarbonised grid we need to reach net zero, with reliability and certainty to meet the needs of consumers and businesses. The project will unlock millions of pounds of contract opportunities for businesses across the North, as well as creating thousands of jobs, and cement the region’s place as the centre of UK energy security.”

ENDS

Notes to Editors:

A link to the Secretary of State for Energy Security and Net Zero’s decision letter can be found here: https://infrastructure.planninginspectorate.gov.uk/wp-content/ipc/uploads/projects/EN010120/EN010120-001660-Drax_BECCS_SoS_Decision_Letter.pdf

The decision letter makes clear that the Examining Authority was satisfied of the ability of the Proposed Development to achieve a 95% capture efficiency and that it was reasonable to treat biomass combustion emissions as zero rated. The Examining Authority concludes that over the whole life of the Proposed Development there would be negative GHG emissions due to carbon captured in the operational phase.

Media contacts:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415 

About Drax:

Drax Group’s (Drax) purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s c.3,500 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

Analysis: development of BECCS at Drax Power Station projected to save UK £15bn and offset carbon emissions equivalent to all departing flights from Heathrow

News
  • Cost savings from carbon removals from BECCS at Drax are projected to be equivalent to £700m per year from 2030 to 2050, compared to other more complex carbon reduction measures
  • Annual amount of carbon captured by the project would be equivalent to taking 3 million cars off the road or cancelling all annual departing flights from Heathrow
  • BECCS at Drax is believed to be the only credible, large-scale carbon removals option that could deliver energy security and support the UK’s 2030 Greenhouse Gas Removals target
  • A bridging mechanism, a key enabler of BECCS, applied prior to the start of BECCS operations could save billions particularly if gas prices spike

New analysis by Baringa and commissioned by Drax Group (Drax) – The Value of BECCS at Drax Power Station – finds that Drax’s proposals for bioenergy with carbon capture and storage (BECCS) could save the UK up to £15bn in whole economy costs between 2030 and 2050.

This saving is equivalent to around £700m per annum, or £25 per household per year, and could help provide a more efficient pathway to meeting the UK’s Net Zero targets.

BECCS is currently the only credible technology that can create carbon removals while also supporting UK energy security by generating renewable electricity. Drax could initially convert two of its generating units to the technology at its North Yorkshire site.

Baringa’s findings demonstrate that without BECCS at Drax, meeting carbon reduction targets is more complicated and expensive for the UK Government and carbon savings would be needed in other sectors. Including, for example, investment in synthetic natural gas production facilities costing £8.5bn, committing to 735,000 more heat pumps beyond existing stretch targets, costing £5bn, amongst other measures.

Will Gardiner, CEO Drax Group, said:

“Climate change is the greatest challenge we face and the UK needs to use every option available to reduce carbon emissions and reach Net Zero as urgently as possible.

“This research shows BECCS at Drax Power Station offers the most cost-effective, straightforward and efficient way to help the country meet climate targets and could save billions of pounds, remove millions of tonnes of carbon from the atmosphere and support the UK’s energy security.

“To hit the UK’s annual carbon removal target, we need to build BECCS at Drax Power Station. Policy support for deploying BECCS grew in 2023, including the publication of the Biomass Strategy, and we believe that we will see the launch of a consultation on the bridging mechanism shortly.”

With around 7 GW of nuclear and coal capacity expected to close between 2024 and 2030, and growing uncertainty around timelines for new nuclear deployment, Baringa’s research underscores the critical role of Drax in delivering both cost effective energy security today and following potential BECCS conversion, in the future. The power station generates around 4% of the country’s power and 9% of its renewable electricity by output1.

The report also shows that the implementation of a bridging mechanism between the end of Drax’s renewable contracts in 2027 and the potential start of BECCS operations could save around £2bn over the period, if gas prices remained similar to the current winter period. This is the equivalent to reducing each UK household’s yearly energy bills by £5. Under Baringa’s model, if gas prices spiked over one winter period, as they did in 2021/22, then the mechanism could save households around £3.5bn in one winter period alone.

Drax investment in UK BECCS could also deliver up to 10,000 high-skilled jobs across the UK at the peak of the project’s construction, as well as safeguarding up to 7,000 direct and supply chain jobs.

ENDS

Notes to Editors:

 1 For the period Q2 2022 to Q1 2023.

Baringa Report: The research shows that the carbon removals that BECCS at Drax Power Station could deliver each year are approximately equivalent to:

  • Taking an additional 3 million internal combustion cars off the road
  • Or reducing the total number of departing flight passengers by 46 million, roughly the same as cancelling all departing flights from Heathrow
  • Or all UK households having 1.5 beef, lamb and dairy free days per week

The link to the report can be found here 

Media contact:

Andy Low
Media Manager
E: [email protected]
T: 07841 068 415

About Drax:

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies four percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator. It is also where Drax is piloting the negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 18 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com

Drax responds to Government progress on electricity storage investment framework

9 January 2024

News

Drax is progressing plans to expand its existing Cruachan pumped storage facility in Scotland through the construction of a new 600 MW plant. Built adjacent to the existing underground facility, the new plant would effectively more than double the site’s total generation capacity to over 1 GW.

The proposal received development consent from the Scottish Government through the Section 36 process in July 2023. Scotland’s First Minister, Humza Yousaf, welcomed the initiative during a visit to Cruachan last year. Mr Yousaf said the expansion would “strengthen our energy security by providing much needed resilience in the system” and be “a real boost to the Scottish economy.”

Despite their critical role in decarbonisation, the existing lack of a suitable investment framework means it is challenging to secure private investment for projects such as new-build pumped storage hydro plants. No new plants of this kind have been built in the UK since 1984.

Growing the UK’s pumped storage hydro capacity is an important factor in enabling more wind and solar power to come online. Pumped storage plants act like giant water batteries by using reversible turbines to pump water from a lower reservoir to an upper reservoir, which stores excess power from sources such as wind farms when supply outstrips demand. These same turbines are then reversed to bring the stored water back through the plant’s turbines to generate power when the country needs it.

Ian Kinnaird, Drax’s Scottish Assets Director, said:

“This is a big step towards making a new generation of pumped storage hydro plants a reality. These new plants would enhance UK national energy security and play a significant role in the fight against climate change.

“Pumped storage stabilises the electricity system, helping to balance supply and demand through storing excess power from the National Grid. When Scotland’s wind turbines are generating more power than we need, Cruachan steps in to store the renewable electricity so it doesn’t go to waste.

“We look forward to working constructively with the UK Government and other stakeholders to help deliver a policy environment which secures investment, strengthens our energy security, and delivers for consumers. Drax is ready to move mountains to tackle climate change.”

Drax’s exciting plans for Cruachan could create and support almost 1,000 jobs during the construction phase.

ENDS

Media contacts:

Aidan Kerr, Senior Media Manager
E:   [email protected]
T: 07849090368

Editor notes

  • Drax applied for development consent from the Scottish Government under Section 36 of the Electricity Act 1989 in May 2022, with the application granted in July 2023.
  • A report by KPMG for Drax found that a Cap and Floor regime was the standout solution to unlock private investment in the technology while incentivising system needs to be met efficiently.
  • No investment decision has yet been taken by Drax and construction remains subject to an appropriate regulatory framework among other considerations.

About Drax

Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com

Power generation:

Drax owns and operates a portfolio of renewable electricity generation assets in England and Scotland. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies five percent of the country’s electricity needs.

Having converted Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe. It is also where Drax is piloting the groundbreaking negative emissions technology BECCS within its CCUS (Carbon Capture Utilisation and Storage) Incubation Area.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan.

The Group also aims to build on its BECCS innovation at Drax Power Station with a target to deliver 4 million tonnes of negative CO2 emissions each year from new-build BECCS outside of the UK by 2030 and is currently developing models for North American and European markets.

Pellet production and supply:

The Group has 19 operational pellet plants and developments with nameplate production capacity of around 5 million tonnes a year.

Drax is targeting 8 million tonnes of production capacity by 2030, which will require the development of over 3 million tonnes of new biomass pellet production capacity. The pellets are produced using materials sourced from sustainably managed working forests and are supplied to third party customers in Europe and Asia for the generation of renewable power.

Drax’s pellet plants supply biomass used at its own power station in North Yorkshire, England to generate flexible, renewable power for the UK’s homes and businesses, and also to customers in Europe and Asia.

Customers: 

Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

To find out more go to the website www.energy.drax.com