Drax has secured up to £100 million from the Green Investment Bank (GIB) to support its switch from coal to biomass.
The cash will help Drax power station, the largest in Western Europe, convert three of its six 660MW coal units to operate on biomass. It has a generating capacity of 3,960MW and provides around 7% of the UK’s electricity supply.
Tony Quinlan, Finance Director of Drax said: “We are very pleased to have successfully secured this financing. We believe it is a clear demonstration of support from the investment community for our biomass strategy. We particularly welcome the involvement of the UK Green Investment Bank… The benefits are multiple, from securing jobs at Drax and across the UK in the supply chain to providing low carbon, cost effective and reliable renewable power for the consumer.”
The CEO of the UK GIB said the financing would help the UK’s transition towards a green economy.