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Drax Group PLC on Tuesday noted the UK Department for Energy Security & Net Zero setting an indicative position on power bioenergy with carbon capture and storage projects, saying it welcomed the UK government’s draft position. The Yorkshire, England-based electricity generator said the indicative position was that large-scale power BECCS projects are eligible to participate in an expansion of the Track-1 carbon cluster sequencing process. As part of the update, DESNZ set out its draft expectation to run the Track-1 expansion and Track-2 processes in parallel, Drax said, subject to transport and storage capacity and ministerial sign off. This relates to Drax as following the designation of the Viking CCS cluster as a Track-2 cluster in July, the company said there are now two potential routes which could support the Drax Power Station BECCS project and wider CCS in the Humber region of England by 2030: the East Coast cluster and Viking CCS cluster. Drax noted that DESNZ also set out an indicative timeline that shortlisted projects would begin negotiations from autumn 2024. DESNZ will now receive feedback on its draft proposals, Drax said, pending further updates and publication of final guidance ‘in due course’. ‘The [UK] government’s statements are a helpful step forward not just for BECCS in the UK, but for the wider fight against climate change. We can only reach net zero by investing in critical, new green technologies such as BECCS. I welcome the government’s draft position and urge them to progress with both Track-1 expansion and Track-2 processes in parallel this winter,’ said Drax Chief Executive Officer Will Gardiner. Drax also noted the UK government’s biomass strategy, published last month. ‘The biomass strategy outlined the potential ’extraordinary’ role which biomass can play across the economy in power, heating and transport, including a priority role for BECCS, which is seen as critical for meeting net zero plans due to its ability to provide large-scale carbon dioxide removals,’ said Drax. Drax said this was in addition to formal bilateral discussions between Drax and the UK government over a potential bridging mechanism between the end of the current renewable schemes in 2027 and the commissioning of BECCS at Drax Power Station. Shares in Drax were down 5.3% to 447.20 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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