Bioenergy & Waste News

Tuesday 23 February 2010

Drax is building a 400MW direct injection co-firing biomass facility and three 290MW dedicated biomass-fired plants

Drax Power has said its biomass-fired generation plans "continue apace" despite the company casting doubt on the technology's future cost-effectiveness.

In year-end results published today (February 23), company earnings fell by almost £100 million on 2008 figures - £454 million to £355 million, ascribed to "challenging market conditions" for coal-fired generators.

But chief executive Dorothy Thompson claimed that despite these figures, Drax would be able to deliver 500MW of biomass co-firing at its primarily coal-fired plant in Selby, Yorkshire, by July - making it the largest of its type in the world - while its plans to build three 290MW dedicated biomass-fired plants nearby were "proceeding well."

Drax has invested in a 400MW direct injection co-firing biomass facility to go with 100MW current capacity at the site in Yorkshire, but earlier this week the company warned that these facilities might not be used if biomass remained more expensive than coal (see this NewEnergyFocus.com story).

However, development continues on the projects, the total capital cost of which Drax estimated at around £2 billion, and a plant to produce pellets from locally sourced straw in Goole, approximately three miles from the Drax site, has been completed.

Planning applications for two of the plants, those at Drax Power Station and the Port of Immingham, were submitted during 2009. Drax said the preliminary engineering and design work has also been completed, and it had commenced the engineering, procurement and construction contract tendering process, which should conclude in the second half of 2010.

In her statement, Ms Thompson said that Drax would continue to "press for the appropriate regulatory regime" to incentivise biomass uptake but that the large contribution expected of the technology towards the UK's 2020 renewables targets meant it should be viable in the long term.

"We believe that the long-term investment case for this business remains strong, particularly in the light of the UK's need for reliable renewable generation capacity by 2020," she said.

"We remain positive that regulatory arrangements will be put in place to support the growth of this form of renewable power."

Drax

At 4GW, Drax Power Station is the UK's largest power plant, providing around 7% of the country's electricity, but also its largest carbon emitter. Drax aims to cut CO2 emissions at the plant by up to 17.5% by 2011, compared to 2006 levels.

In line with this ambition, Drax Power Station burnt 381 kilo tonnes of biomass in 2009, lower than the 2008 figure of 412 kilo tonnes, but a higher percentage of overall fuel burnt.

Its biomass plans are one of two major carbon abatement policies, the other being an upgrade to improve the efficiency of its turbines to meet performance levels of 40% thermal efficiency.

At full capacity the biomass co-firing facility would reduce the power station's CO2 emissions by over two and a half million tonnes each year, Drax claimed, displacing approximately one and a quarter million tonnes of coal and generating more than one and a half million Renewables Obligation Certificates (ROCs) per year.

Together the two carbon abatement projects would have the capability to deliver CO2 emissions savings of over three and a half million tonnes a year, meeting Drax's 17.5% reduction target.

The company was also keen to emphasise that the development of its dedicated biomass-fired business was on schedule and backed by residents. As well as the planning applications submitted during the year, an ongoing consultation process indicated "strong public support," it said.

Dorothy Thompson said: "Our biomass plans continue apace. We will have the capability to deliver 500MW of biomass co-firing at Drax by mid-year and our new build plans for dedicated biomass plants are proceeding well."