Low SP reason?/wood pellets12 Oct 2017 23:19
The other big question is how long the subsidies will last, especially now with Brexit happening....without them Drax is done and dusted but as I said earlier it supplies 7% of the nation's electricity so can the Govt afford to let it go to the wall? I would think not.
I think it is primarily this uncertainty over subsidies that has dropped the SP all the way down from 800p to 295p
They are also planning on converting some of the power units to gas - could they not do this for all the power units in time as importing wood chips from America and spending half a billion a year on this is clearly mad and not financially sound!
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Drax given �1bn to burn wood pellets
Taxpayers pumped an extra �548m into Drax power station last year to fund its controversial practice of burning wood chips instead of coal.
The subsidies mean that the North Yorkshire plant, Britain�s biggest single source of carbon dioxide emissions, has reaped �1bn of taxpayer support over the past two years to burn biomass fuel.
Britain is more reliant on biomass, alongside wind and solar power, amid pressure to close dirty coal-fired stations.
**Drax, which supplies about 7% of Britain�s electricity, now generates two-thirds of its power from organic matter, the rest from coal. It imports wood pellets from America.
https://www.thetimes.co.uk/article/drax-given-1bn-to-burn-wood-pellets-lt70qhxcg
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Companies across Europe, including the U.K.�s Drax Group Plc and Poland�s PGE SA, benefit from aid to use biomass in order to reduce greenhouse-gas emissions produced from coal. Governments have no obligation to report how much is spent on subsidies for the so-called co-firing, which amount to �burning taxpayers� money,� lobbies including WWF Europe, Oxfam, BirdLife Europe and Transport & Environment said.
�EU policies are absurd from a resource-efficiency point of view,� Linde Zuidema, campaigner at the FERN forest-protection lobby, told reporters in Brussels on Thursday. Wood is the single biggest source of renewable energy in the EU and the bloc�s policies have led to growing forest harvest, she said.
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