The UK’s largest coal-fired power station is to get a Government guarantee to help its part conversion to using biomass, according to the Financial Times.
It reported that Drax would receive a Treasury guarantee for £75 million of the debt for the project with the rest coming from the Green Investment Bank and private investors.
The £225 million project to convert three of the six power units at Drax to biomass will also be supported by the Renewables Obligation subsidy.
Drax currently co-fires coal and biomass and announced last month that it intends to convert its first power unit to biomass-only as soon as April.
At the time, Drax chief executive Dorothy Thompson said: “After 10 years developing significant knowledge and experience in all aspects of using sustainable biomass in place of coal at out power station, we now have the mandate, means and expertise to transform the business into a predominantly biomass-fuelled generator.”