Released August 15, 2011 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has cleared the way for the construction of two large biomass plants, but the owner has warned that they may never get off the ground unless the government improves the subsidies for the biomass sector.
Permission was granted by the Department of Energy and Climate Change (DECC) to Drax Biomass Limited, part of Drax Group plc (LSE:DRX) (Selby, England), for the construction of two biomass plants rated at 299 megawatts (MW) each. The Ouse Renewable Energy Plant is planned for a site at the existing 4,000-MW coal-fired Drax Power Station in Selby, North Yorkshire, while the Heron Renewable Energy Plant will be located at South Killingholme near Immingham in Lincolnshire.
"It is vital that we get investment in new power stations up and down the country to ensure secure energy supplies for people's homes and businesses," said Energy Minister Charles Hendry on granting permission. "I am very pleased to give the go-ahead for these two new biomass power stations in Yorkshire and North Lincolnshire. They will not only enhance our security of supply, but provide low-carbon electricity that reduces our carbon dioxide emissions."
However, Drax has warned that the government must improve the subsidy and regulatory structure for biomass before it will commit to building the plants. "Drax generated around 6% of the U.K.'s renewable power in the first half of 2011; double the renewable output of any other facility," stated Dorothy Thompson, Chief Executive of Drax. "Biomass burnt at Drax delivers carbon footprint savings of over 50% compared to a typical gas-fired generating plant. However, we continue to operate at less than our installed renewable capacity because of the current low level of regulatory support for electricity produced by burning sustainable biomass instead of coal."
She added: "We welcome the recent publication of the Government's Renewable Energy Roadmap and we are encouraged by the recognition that burning biomass in place of coal, in facilities like Drax, is one of the most cost-effective means of producing renewable electricity and could provide a third or more of the U.K.'s required renewable power by 2020. Drax stands ready to transform into a predominantly renewable generator, but to do so we will need an appropriate level of support under the renewables incentive mechanism."
This is not the first time that Drax has put the brakes on its biomass projects. Last August, the company delayed plans to build three biomass projects worth more than £2 billion ($3.2 billion), thanks to what it called an uncertain regulatory framework. These included the Selby and Immingham plants, alongside another at the port of Hull. For additional information see August 8, 2010, article - Drax Delays Three U.K. Biomass Projects.
Last month, the government published its Renewables Roadmap, highlighting biomass electricity and heat as two of the key renewable technologies with the most potential to meet the U.K.'s 2020 goal of producing 15% of its electricity from renewables and lowering its CO2 emissions. The others are onshore and offshore wind, marine energy, ground source and air source heat pumps and renewable transport technologies. For additional information see July 15, 2011, article - U.K. Reveals 'Challenging' Renewables Roadmap.
View Plant Profile - 1073074
View Project Report - 78000482 200005048 78000485
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Permission was granted by the Department of Energy and Climate Change (DECC) to Drax Biomass Limited, part of Drax Group plc (LSE:DRX) (Selby, England), for the construction of two biomass plants rated at 299 megawatts (MW) each. The Ouse Renewable Energy Plant is planned for a site at the existing 4,000-MW coal-fired Drax Power Station in Selby, North Yorkshire, while the Heron Renewable Energy Plant will be located at South Killingholme near Immingham in Lincolnshire.
"It is vital that we get investment in new power stations up and down the country to ensure secure energy supplies for people's homes and businesses," said Energy Minister Charles Hendry on granting permission. "I am very pleased to give the go-ahead for these two new biomass power stations in Yorkshire and North Lincolnshire. They will not only enhance our security of supply, but provide low-carbon electricity that reduces our carbon dioxide emissions."
However, Drax has warned that the government must improve the subsidy and regulatory structure for biomass before it will commit to building the plants. "Drax generated around 6% of the U.K.'s renewable power in the first half of 2011; double the renewable output of any other facility," stated Dorothy Thompson, Chief Executive of Drax. "Biomass burnt at Drax delivers carbon footprint savings of over 50% compared to a typical gas-fired generating plant. However, we continue to operate at less than our installed renewable capacity because of the current low level of regulatory support for electricity produced by burning sustainable biomass instead of coal."
She added: "We welcome the recent publication of the Government's Renewable Energy Roadmap and we are encouraged by the recognition that burning biomass in place of coal, in facilities like Drax, is one of the most cost-effective means of producing renewable electricity and could provide a third or more of the U.K.'s required renewable power by 2020. Drax stands ready to transform into a predominantly renewable generator, but to do so we will need an appropriate level of support under the renewables incentive mechanism."
This is not the first time that Drax has put the brakes on its biomass projects. Last August, the company delayed plans to build three biomass projects worth more than £2 billion ($3.2 billion), thanks to what it called an uncertain regulatory framework. These included the Selby and Immingham plants, alongside another at the port of Hull. For additional information see August 8, 2010, article - Drax Delays Three U.K. Biomass Projects.
Last month, the government published its Renewables Roadmap, highlighting biomass electricity and heat as two of the key renewable technologies with the most potential to meet the U.K.'s 2020 goal of producing 15% of its electricity from renewables and lowering its CO2 emissions. The others are onshore and offshore wind, marine energy, ground source and air source heat pumps and renewable transport technologies. For additional information see July 15, 2011, article - U.K. Reveals 'Challenging' Renewables Roadmap.
View Plant Profile - 1073074
View Project Report - 78000482 200005048 78000485
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
