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UK energy policy criticized as Drax quits carbon capture project
- 9 years ago (2015-09-26)
- Junior Isles
The Drax power company, in charge of the largest power plant in the UK of the same name, has thrown a £1 billion ($1.52 billion) UK government climate-change plan into turmoil, saying that government green policy reversals have made it too risky to move forwards.
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The proposed carbon capture and storage system to the huge 3,960 MW Drax power plant in North Yorkshire was the result of five years of planning with the government, and represents the most visible sign yet of how green subsidy cutbacks are impacting investors.
Peter Emery, Drax board member chairing the group developing the carbon capture project, said: “we are no longer confident [that] we can persuade our shareholders that this is an attractive investment, given the obvious risks.”
While Drax has already invested £3 million into the White Rose capture and storage programme, it would have had to spend much more if the project had gone ahead – all while its share price has been significantly decreased over the past 18 months due to government taking away support for wood pellets, an alternative renewable fuel to coal.
Since the May election, the Conservative UK government has reduced subsidies for wind and solar power, ended the Green Deal home energy saving programme and raised questions about future support for renewable energy. The changes have provoked the CBI, the largest business lobby, to insist that ministers must spell out a coherent energy policy.
The White Rose carbon capture and storage programme at Drax is one of many such projects the UK government has tried and failed to implement over the last eight years.
UK government statistics released this week show that renewable energy has outstripped coal for a whole quarter for the first time, as wind, solar and bioenergy now make-up a record 25 per cent of electricity produced by the UK.
Electricity generated from gas-fired plants provided the most of the UK’s energy (30 per cent), renewables was second, nuclear power was third with 21.5 per cent and coal – responsible for being the most environmentally harmful – was in fourth with 20.5 per cent.
RenewableUK’s chief executive, Maria McCaffery, said: “The new statistics show that the UK is relying increasingly on dependable renewable sources to keep the country powered up, with onshore and offshore wind playing the leading roles in our clean energy mix.”
The latest figures come after heavy criticism this week from business leaders and Al Gore at the UK government’s decision to cut renewable subsidies.