Yesterday Claire Coutinho, the Energy Secretary, gave the green light through a Development Consent Order (DCO) for the company’s plans to add carbon capture technology to two of its four biomass units for its BECCS project which it aims to have operational by 2030.

This takes the company a step closer to realising the project which has been hit with delays over the past year, leading to Drax to pause its funding until the Government agreed to back the project which was last year overlooked for its flagship carbon capture schemes.

It is expected that Ms Coutinho will later this week announce a consultation into extending Drax’s generous and controversial green energy subsidies.

Claire Coutinho, the Energy Security and Net Zero Secretary, has approved the planning consent for the controversial project.

Sources told The Yorkshire Post that the preferred outcome would be a three year extension to the subsidies which are due to expire in 2030.

Will Gardiner, CEO Drax Group, said: “The DCO approval is another milestone in the development of our BECCS plans, and demonstrates both the continued role that Drax Power Station has in delivering UK energy security and the critical role it could have in delivering large-scale carbon dioxide removals to meet Net Zero targets.

“We welcome the ongoing development of policy support for BECCS and the anticipated launch of a consultation on a bridging mechanism for biomass generators to take them from the end of current renewable schemes through to BECCS operations.”

The company is currently still subject to an Ofgem investigation into the validity of its reporting in receiving subsidies following a Panorama investigation which suggests the wood pellets it uses in its biomass plant are from rare North American woodland, rather than the sustainable offcuts which the company suggests.

This week three Conservative MPs voiced their concerns over extending the subsidies, telling the Telegraph that Drax’s carbon capture technology is “not proven”.

Separately, research by the Ember think tank suggested that the project could cost as much as £43.34 billion over 25 years due to high wood prices and require subsidies of up to £1.7 billion per year.

Drax has suggested that its BECCS project could save the UK up to £15 billion between 2030 and 2050, according to research it has commissioned.

Drax carbon capture project gets planning green light from ministers