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Energy minister Charles Hendry has given the green light for Drax to build two biomass power stations. But the projects will remain on hold until a final decision is made on future government support for biomass.
Hendry gave the go-ahead for biomass power stations in Yorkshire and North Lincolnshire, claiming they would provide low-carbon electricity that would help reduce carbon dioxide emissions.
He said: “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.”
The developments given formal consent are both 299MW power plants, one on the site of an existing coal-fired power station in Selby, North Yorkshire, and the other in South Killingholme near Immingham. Construction of the stations could employ around 1,200 people and once operational each plant could have a staff of 150.
Together, the plants could produce enough energy to supply one million homes. Initially, the biomass used would be imported, with a view to developing local resources in the future.
Despite the permission to build, Drax’s future plan for biomass hangs in the balance until next April, when the government will finalise the value of future subsidies awarded to energy companies producing power from biomass.
Under the Renewables Obligation, green certificates are awarded to suppliers producing renewable energy. These can be sold to companies that purchase energy, to help them meet government targets for renewable power. Dedicated biomass power production gains 1.5 certificates for every megawatt-hour of energy produced, which is not enough to make the plants economically viable. By comparison, offshore wind is awarded two certificates for every MWh produced.
A review of these subsidies is under way, with an initial announcement expected in early September. A 12-week consultation on the figures will follow, with a response published by the end of the year. The legislation will progress to parliament several months later.
Drax said: “Section 36 consent is a necessary part of the development process. However, progress will be dependent on the government’s final decision on the future support levels under the Renewables Obligation.”
Co-firing of coal and biomass gets half a certificate per MWh. The existing co-firing Drax plant in Selby is running under capacity, because this level of subsidy means it is not economical to work at full load.
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