Drax PLC pulls out of UK carbon capture project

Drax cites financial, regulatory environment issues

Drax PLC is pulling its support from White Rose CCS project, a carbon capture system that is designed to capture 90 per cent of carbon emissions from a new coal-fired power station.

SELBY, YORKSHIRE – Officials with Drax PLC, a United Kingdom power generation company, have announced it will withdraw as a partner in a carbon capture system in North England.

The White Rose CCS project is designed to capture 90 per cent of carbon emissions from a new coal-fired power station and safely store them beneath the North Sea.  It has been heralded as the world’s first commercial scale, full chain, carbon capture and storage coal-fired plant.

“The decision is based purely on a drastically different financial and regulatory environment and we must put the interests of the business and our shareholders first”, says Pete Emery, Drax Group Operations Director.

The project is to be completed in the next six to 12 months.

Emery says despite pulling out of the project, Drax PLC is committed to completing a study into the feasibility and development of technology that could result in drastic reductions in carbon emissions produced by power stations and heavy industry.

Following the announcement, Capture Power confirmed its commitment to the delivery of the White Rose Carbon Capture and Storage Project.

Leigh Hackett, CEO of Capture Power, said “Drax’s decision not to invest further in the Project is disappointing, but we are keen to confirm that Capture Power remains committed to delivering the White Rose CCS Project.”

Along with its decision on White Rose, Drax announced on Friday that the company will now focus on working with the government to convert a generating unit to run on sustainable biomass.