DRAX withdraws plans for biomass plant

Plans to build 2 biomass power plants in Yorkshire have been discarded by electricity generator Drax.

Drax's initial plan, announced back in 2008, was to invest £2 billion (€1.49 billion) constructing 3 biomass power stations located respectively in Immingham, Selby and the third in an unconfirmed location, potentially Hull. The scheme in Selby was cancelled along with plans for the third plant. The company has cited Low Government subsidies as the cause of these cut backs.

Instead of continuing with its original plans, Drax intends to invest up to £500 million (372.07 million) converting its North Yorkshire plant, so that it is fuelled in the majority by biomass. A planned £50 million (37.22 million) will be spent this year modifying the plant to make it 20% biomass-fuelled. Plans to then spend up to £450 million (335.01 million) to make the plant mainly biomass-fuelled is reportedly dependant on subsidies.