Drax to end further investment in its CCS project
25 September 2015
A "drastically different financial and regulatory environment" prompts one of the UK's biggest generators to halt further carbon capture & storage development.
Drax says it remains committed to fulfilling its current work on a feasibility and technology development project, but once completed, would not be investing further and will withdraw as a partner of Capture Power, the developer of the White Rose CCS project.
The two year project is being taken forward by the Capture Power partnership – made up of Drax, Alstom and BOC and is looking at the potential to capture up to 90 percent of carbon emissions from a new coal fired power station and store them beneath the North Sea. The project is due to conclude during the next 6-12 months.
Drax has also confirmed that while at that point it would cease to commit further investment, it will continue to make the site owned by Drax, along with the infrastructure at the Power Plant, available for the project to be built. Drax Group operations director, and Capture Power Board director, Pete Emery commented:
“We remain fully committed to completing what we’ve signed up to – the completion of a study into the feasibility and development of world leading technology that could result in dramatic reductions in carbon emissions produced by power stations and heavy industry.
“We are confident the technology we have developed has real potential, but have reluctantly taken a decision not to invest any further in the development of this project. The decision is based purely on a drastically different financial and regulatory environment and we must put the interests of the business and our shareholders first.
“We will focus our resources on the areas which we can deliver best value, particularly working with government to explore the potential for converting a fourth generating unit to run on sustainable biomass.
“Drax still believes this project has great potential and we have announced that the site at the Drax Power Plant, along with our existing infrastructure remain available for the project to be built.”