Co-firing
The multi-million pound co-firing facility will enable us to meet our target to produce 12.5% of our power generation from co-firing and it is a key element of our goal to reduce carbon dioxide (CO2) emissions by 15%. Reaching the 12.5% target will save over 2.5 million tonnes of CO2 each year.
Drax Power Station in North Yorkshire is already the largest, cleanest and most efficient coal-fired power station in the country. This latest investment not only strengthens our environmental leadership position, but further enhances our reputation to stay at the forefront of developments to establish effective alternative fuel technologies for electricity generation in the UK.
The co-firing facility will enable the power station to receive, handle, store and process a variety of biomass materials before they are directly injected into Drax’s coal-fired boilers where they are burnt alongside coal.
Biomass-fired Plant
On 23 October, Drax announced its plans to develop three biomass-fired generating plants. We expect two of the sites to be at Hull and Immingham, where we have already secured land options and are now undertaking design, permitting and environmental assessment work for each of these sites. We will need to make good progress in these areas before making final decisions on the investment and full commitment to build.
We are exploring alternatives for a third site, with serious consideration being given to locating the third plant at Drax Power Station, but there are a number logistics issues we need to solve to make this possible.
This significant investment by the company could result in Drax becoming responsible for supplying at least 15% of the UK’s renewable power and up to 10% of total UK electricity. Each of the biomass plants will have a capacity of 300MW, bringing our total renewable capacity including the biomass co-firing capability at Drax Power Station to 1,400MW, enough to power 2 million homes and the equivalent output of 2,000 wind turbines.
The plants will be built through a Joint Development Agreement with Siemens Project Ventures and the cost including logistics and processing facilities is likely to be in the region of £2bn.
This is an exciting opportunity for Drax and demonstrates our continued commitment to developing capability in renewable power and playing a part in the transition towards a low carbon economy in the UK.
Biomass
We have been developing our capability to burn biomass since 2003 as part of our strategy to maintain our vital role as supplier of around 7% the UK’s electricity needs and safeguard secure and reliable electricity supplies into the future.
Biomass materials include sustainable wood-based products, forestry residues and residual agricultural products, such as sunflower seed husks and peanut husks.
The experience we have gained coupled with extensive product trials has resulted in Drax securing a ready and flexible supply of raw materials through working with leading producer groups across forestry, farming and agricultural industries.
We have in place supply agreements with local producer groups and supplier groups for all of our energy crop and energy forestry requirements. Farmers, foresters and landowners can be involved in crop and/or forestry supply through partnership with these representative groups. Either way, Drax can guarantee you long-term contracts, a sustainable return and stable, index-linked pricing whilst avoiding the risks of the volatile commodity markets.
Drax Power is fully committed to developing a UK biomass market and is convinced of the value of strategic partnerships that build prosperity for everyone and help promote environmental benefits.
Our aim is to source biomass supplies of up to 1.5 - 2 million tonnes a year for co-firing and around 1.3 million tonnes a year for each of the biomass-fired plant, with a significant proportion from the UK. This will provide a valuable contribution to the use of renewables in electricity generation and has the potential to make a significant contribution to the Government’s UK renewable energy target.
Co-firing with biomass fuels provides many benefits to the environment and the economy: It is a low cost, efficient renewable technology. It directly replaces coal burning, so reducing CO2 emissions. It makes an important contribution towards meeting the Government’s target on the use of renewables in electricity generation. Development of an energy crop market is good for UK farming, forestry, recreation and the countryside. To help deliver these benefits we need to work together now to source biomass supplies, and establish crops and forestry for harvest over the next two years.
