Jobs blow as scheme for biomass power plants in region scrapped

The electricity generator instead plans to spend up to £500m on converting its North Yorkshire plant into one mainly fuelled by biomass – organic, plant-based material such as straw and wood.

Drax first revealed £2bn plans to build three 300 mega watt (MW) dedicated biomass power stations in October 2008. One was planned for Immingham, another in Selby, with the third at an unspecified location – thought to be Hull.

Drax said it has cancelled the Selby scheme, is “exploring options” for the Immingham scheme and had effectively scrapped plans for the third.

The company blamed low Government subsidies for its decision to scale back the project, which would have created about 600 jobs.

“Our priority is to put biomass in the coal plant,” said Drax chief executive Dorothy Thompson. “That’s become Government’s priority as well.

“They want limited volumes from dedicated [biomass].”

The Government is keen to wean Britain off its dependence on coal and sees biomass as useful in increasing renewable generation.

But climate change advisers recently called for the Government to prioritise plant conversion over stand-alone biomass schemes.

Drax will spend £50m this year on modifying the plant to become 20 per cent biomass-fuelled. Depending on subsidies it then plans to spend up to £450m on becoming mainly biomass-fired.

A spokesman for the Department of Energy and Climate Change said: “It is for the company to decide their investment priorities within the support framework that has been proposed for biomass electricity.

“However, we welcome Drax’s interest in stepping up co-firing with biomass.”