Drax Group PLC - Yorkshire, England-based electricity company - Says it welcomes UK government’s launch of consultation on a transitional support mechanism for large-scale biomass generators transitioning in 2027 from the end of current renewable schemes, to bioenergy with carbon capture and storage or BECCS. Consultation closes on February 29, and sets out four models including two that are ’Contracts for Difference’-based. Drax believes delivering UK’s greenhouse gas removal targets ‘will require the development of at least one BECCS unit at Drax Power Station by 2030’.

Chief Executive Officer Will Gardiner says: ‘BECCS is currently the only credible large-scale technology that can generate renewable power and deliver carbon removals.

‘The consultation is necessary to develop an appropriate mechanism that will ensure biomass power stations, like Drax Power Station, continue to play an important role in the UK’s energy security while transitioning to BECCS and helping the UK to meet greenhouse gas reduction targets. We will be responding to the consultation in due course.’

Current stock price: 461.12 pence, down 7.3% on Thursday afternoon

12-month change: down 29%

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