|
Drax Group PLC shares slid on Thursday after the UK government rejected its biomass carbon-capture and storage project plan. Shares in the Yorkshire, England-based power generator recovered slightly, down 1.0% to 568.50 pence in London on Thursday in late morning trade. It had been down around 12% earlier on Thursday. The Department for Energy Security & Net Zero said that Drax’s power bioenergy with carbon capture and storage submission, alongside one by Lynemouth Power Ltd, had met the minimum criteria for deliverability by 2027, but would not be one of eight projects selected as its Track-1 carbon-capture and storage clusters. The government noted that it will continue to engage with Drax’s project, adding that ‘track-1 is not the extent of our ambition’. It will provide Drax with further feedback on its decision. Drax said the government has invited it to enter formal bilateral discussions to ‘move the project forward and ensure the government is able to fulfil its restated commitment to achieving [five million tonnes per annum] of engineered greenhouse gas removals by 2030.’ The company said it believes BECCS at Drax Power Station is the ‘only project that can enable the government to achieve this goal’. The firm added that its BECCS project is eligible for both the expansion of Track-1 - set to take place during 2023 - and for Track-2, which was launched today. Chief Executive Officer Will Gardiner said: ‘We note confirmation that our project has met the government’s deliverability criteria and government remains committed to achieve 5Mtpa of engineered greenhouse gas removals by 2030 - a goal that cannot be achieved without BECCS at Drax Power Station. We will immediately enter into formal discussions with government to take our project forward. ‘With the right engagement from government and swift decision-making, Drax stands ready to progress our £2 billion investment programme and deliver this critical project for the UK by 2030.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
