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Drax has dropped plans for a 300MW dedicated biomass plant in Lincolnshire. The Heron project was the company’s last planned biomass scheme after it cancelled two others earlier this year.
In a letter to North Lincolnshire Council seen by Utility Week, Drax Power said it was cancelling plans for the £600 million plant because of the “highly challenging” investment case and “the lack of regulatory support for dedicated biomass”.
In February, the company abandoned plans for two other 300MW biomass plants, in favour of converting its 4GW coal power station in north Yorkshire to burn predominately biomass.
The Renewable Energy Association (REA) called the cancellation “alarming”.
Recent government proposals to cut the number of Renewables Obligation Certificates allocated to biomass were “extremely destabilising”, said REA head of policy Paul Thompson. Other plans for dedicated biomass plants could also disappear due to a lack of secured funding, he said.
Drax was unavailable for comment at the time of going to print.
This article first appeared in Utility Week’s print edition of 26th October 2012.
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