Drax in pledge to restart biomass talks

The North Yorkshire plant operator is keen to push the case for a change to the regulatory regime with whichever political party gets into power.

The group has said that it needs "regulatory certainty" if it is to build three standalone biomass plants throughout the Yorkshire and Humber region.

Drax said it expects to be able to prove the long-term investment case for a dedicated biomass-fired generation plant by the end of the year.

Drax chairman Charles Berry told shareholders at yesterday's annual general meeting that biomass has much to offer the energy sector.

"As far as electricity generation is concerned, biomass is not only a sustainable fuel source, but it's a reliable one which means it can make an important contribution to security of supply or keeping the lights on," he said.

Drax added that it has exceeded its 10m cost saving target, delivering 14m in savings instead .

The group said it had started 2010 with more certainty over earnings for the year following action taken last year to accelerate its forward sales when it saw the opportunity to lock in better margins than in 2009.