Investment in BECCS FEED Study

RNS Number : 7152V

Drax Group PLC

15 December 2021

 

15 December 2021

Drax Group plc

("Drax" or the "Group"; Symbol: DRX)

Investment in BECCS FEED Study and Initial Site Preparation Works

Drax is pleased to announce that its subsidiary Drax Power Ltd has appointed Worley Europe Ltd (Worley)⁽¹⁾ to begin a Front-End Engineering Design (FEED) study for its bioenergy with carbon capture and storage (BECCS) project at Drax Power Station.

The programme of works will provide the detailed design information and costings, which alongside confirmation of the financial model for BECCS and planning approval, would allow Drax to take a final investment decision in 2024, allowing the first unit to commence operation in 2027 and the second by 2030.

Will Gardiner, Drax Group CEO, said: "Our investment in BECCS and the signing of this contract with Worley demonstrates Drax's commitment to deliver a vital technology which is urgently needed to address the climate crisis. It's no longer enough to reduce emissions - the world has got to start removing carbon from the atmosphere if we are to avert this climate crisis.

"The Government's ambition for BECCS and its backing for the East Coast Cluster further demonstrates the vital role this negative emissions technology at Drax can play in helping the UK reach its net zero targets, as well as creating and protecting thousands of jobs and kickstarting a new green economy."

As well as the FEED study, Drax will commence site preparation works, including decommissioning and relocation work, creating the space required to develop the new infrastructure for BECCS.

The combined programme of works represents a capital investment in the region of £40 million in BECCS at Drax Power Station during 2022, which would allow for the commencement of operations on a first BECCS unit in 2027.

Note

(1)  Worley are a global provider of professional project and asset services in the energy, chemicals and resources sectors.

Enquiries:

Drax Investor Relations: Mark Strafford

[phone]

Media:

Drax External Communications: Ali Lewis

[phone]

Website: www.drax.com

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