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Drax Ends CCS Pilot Project

Friday, September 25, 2015

Drax Announcement On CCS Badly Undermines UK Government Commitment To Funding Demonstration Projects

This is an indictment of the Government’s failing energy policy which wants clean energy but does not want to invest in the necessary cutting edge technology says GMB

GMB, the union for energy and engineering construction workers, commented on the announcement that Drax will end further investment in White Rose Carbon Capture & Storage (CCS) project. See notes to editors for copy of press release by Drax dated 25th September 2015.

Dan Shears, GMB National Health, Safety & Environment Officer, said “This announcement badly undermines the UK Government’s commitment to funding CCS demonstration projects. These projects are crucial to demonstrate the value of industrial large-scale CCS technology.

CCS will be required on all coal- and gas-fired power stations by 2030, so the demonstration projects set important early operational benchmarks.

The Drax announcement must threaten the viability of CCS in the UK altogether.”


Phil Whitehurst, GMB National Officer for Construction, said “This is yet another indictment of the failing energy policy of the UK Government. It wants clean energy but does not want to invest in the necessary cutting edge technology.

This is a blow because this construction project has been long awaited in Yorkshire. It comes on top of  the recent body blow of Eggborough Power Station entering in consultation over closure  because the owners were been refused green subsidies.

This make you wonder where it will all end. Maybe if CCS pilot had been in located in the south and had Chinese investors then the Government would have looked more favourably on the project by awarding it the subsidies to continue.”

End 

Contact Phil Whitehurst. 020 7391 6700 or 07968 338810 or Dan Shears 0207 3916715 or 07918-767781.

Notes to editors

Copy of press release dated 25th September 2015

Drax announces plan to end further investment in White Rose Carbon Capture & Storage project

Selby, Yorkshire: Drax today announced it remained committed to fulfilling its current work on a Carbon Capture & Storage (CCS) feasibility and technology development project (FEED), but once completed, would not be investing further and will withdraw as a partner of Capture Power Ltd, 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% of carbon emissions from a new coal fired power station and safely 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 said:

“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.”

ENDS

Contacts

Paul Hodgson
Head of Media Relations
+44 1757 612 026
+44 7525 590 271
paul.hodgson@drax.com

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