Watchdog launches investigation into Drax

Yesterday Ofgem announced that it is investigating whether Drax is in breach of green energy rules.

“We are investigating whether Drax Power Limited is in breach of annual profiling reporting requirements relating to the Renewables Obligations scheme and other related matters,” it said.

“The opening of this investigation does not imply that we have made any findings about possible non-compliance by Drax Power Limited.”

The escalation comes after Ofgem commenced an “audit” into the company.

Earlier this week it emerged that a US plant that supplies wood pellets to Drax had violated air pollution limits in Mississippi.

A Drax statement said: “Ofgem's announcement states that the opening of an investigation does not imply any finding of non-compliance. It has separately confirmed that it has not established any non-compliance that would affect the issuance of Renewable Obligation Certificates (ROCs) to Drax, and therefore the associated financial benefit.

“Like all energy generators, Drax receives regular requests from Ofgem and continues to cooperate fully throughout this process.

“Last year Drax appointed a third party to independently verify the accuracy of its biomass sustainability and profiling data as part of an ongoing process. Drax is confident in the compliance of its biomass with the Renewables Obligation criteria.”

However, further steps towards Drax’s biomass energy plans (BECCS) in North Yorkshire took a step closer in recent days with the Government confirming that it had launched a consultation into the proposals at its North Yorkshire power station.

Kathryn Richardson, Environment Manager at the Environment Agency said: “The Environment Agency (EA) has an important part to play in permitting many of the energy technologies that are likely to emerge over the coming years.

“Our role is to ensure that these new technologies, including carbon capture, are conducted in a way that protects people and the environment.

“We’re now seeking views from the local community and interested groups on this application. We encourage them to come and see us at our engagement events so they can find out more and view the plans in detail.”

To capture carbon dioxide from the combustion process, Drax will need an environmental permit from the Environment Agency. It will also need a Development Consent Order, following a process led and examined by the Planning Inspectorate, the EA said.