Isra-Mart srl:Drax blames government for hampering biomass co-firing plans

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Isra-Mart srl news:

Drax Group stepped up its biomass co-firing operations last year, but remains concerned a lack of government support is forcing it to delay further green investments and restrict the amount of renewable fuel burnt at its Yorkshire power station to less than half full capacity.

The company burned a record 907,000 tonnes of biomass in 2010, double the previous year, according to year end results published yesterday.

The 4,000MW power station is famously the UK's largest carbon emitter, but Drax claimed its co-firing activities also made it the UK's largest single largest generator of renewable energy, accounting for seven per cent of the country's total output.

However, in a statement, Drax chief executive Dorothy Thompson reiterated the company's complaints that insufficient government support rendered co-firing larger amounts of biomass uneconomic.

"Drax Power Station generated around seven per cent of the UK's renewable power in 2010, which is more than twice as much as any other facility in the UK," she said. "This was despite not using our renewable facilities at full capacity because of low regulatory support for biomass."

Drax spent £80m adding extra co-firing capabilities last year, which Thompson said offered the potential to ramp up the power station's renewable output by 50 per cent.

At this capacity, co-firing would produce more electricity than 600 wind turbines, account for 12.5 per cent of Drax's total power output and generating carbon savings of 2.5 million tonnes a year, she added.

Thompson claimed Drax could generate the majority of its power from co-firing if biomass subsidies were increased from their current levels, which equates to about a quarter of the support offshore wind farms receive.

"We believe reliable and flexible electricity generation from biomass could and should make a significant contribution to meeting the UK's demanding climate change targets at relatively low cost," Thompson said. "With appropriate regulatory support, we stand ready to expand our biomass capability significantly, increasing our renewable output from today's level."

Alongside its investment in co-firing, the company has also proposed building three dedicated biomass plants at a cost of £2bn.

However, it warned plans for the 290MW facilities would be shelved unless the government makes its support for the technology clearer.

In a statement supporting the results, Drax welcomed the government's decision to bring forward its review of the feed-in tariff scheme, which does not currently include electricity generated from biomass, as well as its proposed reform of the electricity market.

"We believe that the proposals will create a more level playing field for investment in renewables by new entrants and independents like Drax," the statement said.

The government is currently considering switching to a new subsidy regime as part of its electricity market reforms, which would offer all forms of low-carbon energy support through an advanced feed-in tariff mechanism known as contracts for difference.

However, biomass projects remain controversial with some green groups who argue emissions savings can only be maximised if the fuel used by new power plants is sourced in line with demanding sustainability standards.