Drax has welcomed the Government's response to the consultation on cost control for further biomass conversions under the renewable obligation scheme, which, it said, would enable the group to convert a fourth unit to biomass. Drax said the response proposes that, rather than imposing a cap on ROC support for any future biomass unit conversions, a cap would be applied at the power station level across all ROC units.
This would protect existing converted units and limit the amount of incremental ROCs attributable to additional unit conversions to 125,000 per annum.
Drax said the response would enable it to optimise its power generation from biomass across its three ROC units under the cap, whilst supporting the Government's objective of controlling costs under the renewable obligation scheme.
Drax said it would now continue its work to deliver the low cost conversion of a fourth biomass unit, accelerating the removal of coal-fired generation from the UK electricity system, whilst supporting security of supply.
Drax said it planned to complete the work on this unit as part of a major planned outage in the second half of 2018, before returning to service in late 2018.
It said the capital cost was significantly below the level of previous conversions, re-purposing the existing co-firing facility on site to deliver biomass to the unit.
At 9:35am: (LON:DRX) Drax Group PLC share price was +2.6p at 280.4p