UK power group Drax in US push to take advantage of green tax credits

By Rachel Millard
The Financial Times
May 23, 2023
Category: Carbon, Climate & Bioenergy
Region: United States, International

UK power generation business Drax is planning a big push into the US, lured by President Joe Biden’s green energy tax incentives under the Inflation Reduction Act.  Will Gardiner, chief executive, said the tax breaks were the “icing on the cake” as he set out plans to spend $4bn building two new power plants in the southern US, with the potential for more to follow. The new plants are part of Drax’s strategy to become a leader in “negative emissions”, which can be sold in the form of credits to other companies looking to offset their emissions. …Gardiner said the country was attractive for its new power plants because of the proximity of biomass supplies and carbon dioxide storage sites. The commercial case for the plants in the US has also been boosted by tax credits under the IRA, worth $85 per tonne of carbon dioxide stored.

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