Supporting biomass energy plan

Drax has come up with a new request in front of the Government to hold its hands for its project of £2 billion to build "green" biomass plants.

However the company is yet to come on its final resentment over the three plants which are set to churn out electricity from burning organic matter such as wood cuttings and peanut husks by the end of the year.

At the same time, the group also cautioned that the regulatory certainty shall be required as the group plans to put a financially tight investment strategy for its electricity plants at Immingham and Hull on Humberside including the base in North Yorkshire.

Drax's base plant, Selby has been considered as Europe's biggest polluters, and the upcoming biomass project might downturn the excitement of a inclination in operating costs for 2013 when the has decided to buy all of the carbon permits to burn coal.

The plants currently have the subsidy level up to 2013 for biomass, whereas other renewable energy like wind has the certainty of 20 years.

Drax has thought to take out its biomass project from UK where it maintains a strong hold. Further, the project for biomass shall be getting reviewed and decided by the end of March 2010.

According to some industry experts, Drax's biomass business is considered as the growth indicator for the group, as it is churning out 7% of the UK's electricity at its base plant in North Yorkshire.