Drax exploring £3bn expansion drive with North American biomass plants
Drax is planning to build its first overseas biomass plants overseas as part of a £3 billion expansion plan, according to The Sunday Times.
The power giant is weighing up locations for biomass-powered generation plants in North America that would use carbon capture and storage (CCS) technology to remove and dispose of CO2 emitted through burning its wood pellet feedstock.
The scheme would not be its first ambitious green revamp, with Drax previously transforming its power station in north Yorkshire from burning coal to feeding off wood pellets.
It is now planning to install CCS on the site by 2027.
Chief executive Will Gardiner told the newspaper he had a team looking at with bountiful wood supplies such as Louisiana, the Pacific Northwest and western Canada.
The move follows Drax’s announcement earlier this month it is looking to double biomass sales and capacity by the end of the decade.
In an ideal world, CCS infrastructure such as pipes to take the CO2 to storage sites underground, would already exist in these locations.
Despite its growing green agenda, Drax is criticised by some environmentalists because its wood pellets still emit CO2 when burned
The company argues the carbon they emit is offset by freshly planted trees.
It also revealed they are seeking to expand the amount of wood fibre pellets it sells to other biomass energy companies around the world, with Japan being a target market.
The company’s shares are up 0.6 per cent for the day on the FTSE 250.