Drax signs contract with C Sp

RNS Number : 2594Q

Drax Group PLC

07 April 2009

 



07 April 2009

Drax Group plc

(Symbol: DRX)

DRAX SIGNS CONTRACT WITH SPENCER 
FOR SUPPLY OF BIOMASS CO-FIRING INFRASTRUCTURE

Drax Group plc's principal trading subsidiary, Drax Power Limited ('Drax'), has announced 

today that it has signed a £18 million ($26 million) Design and Build ('D&B') contract with 

C Spencer Limited ('Spencer') to supply rail unloading equipment and biomass bulk storage and 

handling systems to feed the direct injection biomass co-firing systems currently being installed at the 4,000MW Drax Power Station in North Yorkshire.  This is the final contract to be awarded for the 400MW biomass co-firing project, which is being delivered to cost and schedule.

Co-firing involves the mixing and burning of renewable biomass materials with coal and, given the carbon neutral status of biomass, is a recognised carbon abatement technology that has significant potential to reduce carbon dioxide ('CO2') emissions from coal-fired power stations. The rail unloading and storage systems represent a major component of the new co-firing facility at Drax and are designed to receive and transport processed biomass materials to be fired in the power station's coal-fired boilers.   

On completion, the biomass co-firing facility will be the largest of its type in the world, which alongside Drax's existing co-firing capability will provide a total of 500MW of renewable electricity, or the equivalent output of over 600 wind turbines. The biomass co-firing facility will reduce Drax Power Station's emissions of CO2 by over two and a half million tonnes per annum supporting Drax's commitment to tackling climate change by reducing its CO2 emissions.

The contract for the rail unloading equipment and biomass bulk storage and handling systems has been awarded following a competitive tender process and is a significant project for Spencer. Work will commence immediately with the detailed engineering design and procurement of key items of equipment. Installation of the equipment is scheduled to be complete in the first half of 2010, coinciding with the completion of the biomass co-firing project.  

Dorothy Thompson, Chief Executive of Drax, said:

'This contract marks the final, critical step in the execution of our co-firing project and we are very pleased to be establishing a new working relationship with Spencer.  

Once complete the new 400MW facility will operate alongside our existing co-firing capability to give us a total renewable capacity of 500MW at Drax Power Station, making us the largest single site renewable generator in the UK.  

Combined with our intention to develop 900MW of dedicated biomass-fired capacity, through the construction of three 300MW renewable energy plants, Drax will on current forecasts become responsible for around 15% of the UK's renewable electricity.

At Drax, we are only too well aware of the need to tackle climate change and the competence we have developed in biomass procurement and project execution means that we are able to play our part in the move towards a low carbon economy, whilst at the same time delivering reliable and secure supplies of electricity.'

Charlie Spencer, Chief Executive of Spencer, said: 

'We are delighted to be building a strong relationship with Drax through the biomass co-firing project.

Reducing CO2 emissions is something which is of great concern to everyone and we are looking forward to working on a project which will see Drax take a significant step forward through increasing their renewable energy capabilities.

The contract award recognises our ability to deliver technically challenging materials handling projects on a turnkey basis. Spencer's in-house team of multi-disciplined professional engineers have been mobilised to work closely with Drax to ensure successful and timely completion of the work.' 

Drax Power Station is also making good progress with its turbine upgrade project, with the installation of the new turbine modules already completed on just over one-third of its generating units. When complete across all six generating units the new turbines will deliver a further saving of one million tonnes of CO2 emissions.  Combined with the saving from co-firing, Drax is set to reduce its annual emissions of CO2 by up to 17.5% (based on current output levels) by 2012.

For more information, please contact:

Melanie Wedgbury Head of External Affairs Drax Power Limited	[phone]
Catherine Reynolds Business Development Assistant C Spencer Limited	[phone]

-ENDS-

Notes to Editors

About Drax Power Limited

Drax Power Limited is the operating subsidiary of Drax Group plc and the owner of Drax Power Station, the largest, cleanest and most efficient coal fired power station in the UK. The output capacity from the station's six generators is 4,000MW. At current output levels it meets some 7% of the UK's electricity needs. 

For more information visit www.draxgroup.plc.uk .

About Spencer

Spencer is a multi-disciplinary construction company with many in-house capabilities including design, electrical, mechanical handling, building services and civil engineering. Spencer undertakes projects throughout the UK from a network of regional offices, several of which are in the Yorkshire region. Spencer was founded in Hull twenty years ago by Chief Executive, Charlie Spencer.  

For more information please visit www.cspencerltd.co.uk .

 

END

 

 

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