Drax to get approval for net zero carbon capture plan - report

8th Jan 2024 10:25

(Sharecast News) - Drax surged on Monday following a report that the UK government is set to approve a multibillion-pound CO2 capture scheme.

According to The Telegraph, Energy Secretary Claire Coutinho is expected to approve a scheme to bolt two massive carbon capture plants onto Drax's four generating units, potentially stripping out almost all of its CO2 emissions.

Drax claims the scheme will allow it to remove more CO2 from the atmosphere than it produces - making it the world's first carbon negative thermal power station.

It was also understood that Coutinho is due to launch a consultation into how best to extend the subsidy system under which Drax last year received £617m from consumer bills. The scheme terminates in 2027 so Coutinho will propose extending it into at least the 2030s, keeping Drax in business for at least several years.

At 1030 GMT, the shares were up 7.6% at 526.74p.