The UK Environment Agency has indicated that it is prepared to approve a permit variation that would allow carbon capture technology to be installed at Drax Power Station, marking a significant step forward for the proposed project.
The regulator announced on 28 May that, following a review of evidence and feedback gathered during previous consultation exercises, it is "minded to" grant the application submitted by Drax Power Ltd. A final decision has not yet been made, and a further public consultation on the draft permit remains open until 24 June.
Drax originally applied for the permit amendment in 2023 as part of plans to introduce post-combustion carbon capture technology at its North Yorkshire power station. The proposed changes would involve substantial modifications to the site's infrastructure, including the installation of carbon capture equipment, upgrades to emissions treatment systems and changes to ash-handling operations.
The project would also include a new treatment facility for process effluent, alterations to flue gas systems associated with generating units five and six, the addition of a quencher tower and the introduction of hydrogen production activities.
If the permit variation is ultimately approved and the project proceeds, carbon dioxide captured at the facility would be transported via pipeline and permanently stored beneath the North Sea as part of a bioenergy with carbon capture and storage (BECCS) scheme.
The Environment Agency said its current position reflects its assessment that there are no grounds to reject the application based on the information available. However, the regulator stressed that the consultation process remains ongoing before a final determination is reached.
The latest development comes despite Drax signalling earlier this year that it was reducing investment in BECCS projects. In its 2025 financial results, published in February 2026, the company said uncertainty surrounding UK policy and the absence of a fully developed regulatory framework had led it to prioritise investment opportunities offering clearer short-term returns.
As a result, Drax recorded an impairment against costs associated with the development of its UK BECCS programme. The company nevertheless reiterated its view that carbon capture at Drax Power Station could play an important role in supporting the UK's net zero ambitions over the longer term, should policy and regulatory conditions become more favourable.
The outcome of the current consultation will determine whether the project can move into its next phase of development.
UK agency backs permit change for Drax carbon capture project
