Drax may get more support for biomass burning after failed UK offshore wind auction

By Oliver Hill
Proactive Investors UK
September 8, 2023
Category: Carbon, Climate & Bioenergy
Region: International

After the UK renewable energy auction that failed to garner a single offshore wind contract, the government may need to extend deals with the likes of Drax Group to keep their coal and biomass power stations going for longer. …Saying the auction had “flopped”, Investec analysts predicted that Downing Street will now need to agree on a deal with Drax. The power company has been facing some uncertainty as the existing subsidy to provide electricity from burning wood pellets ends in 2027. Though it has taken some encouragement from recent government support for some of its activities, Drax has claimed it faces a gap in its funding, with its £2bn carbon capture project not expected until 2030. The Investec analysts said: “Keeping Drax on the system post March 2027 looks ever more important.”

Read More