Drax Signs New Low-Carbon CfD with UK Government
Drax Group has secured a new ‘low-carbon dispatchable’ contract for difference (CfD) with the UK government’s Low Carbon Contracts Company. This contract covers all four biomass units at Drax Power Station, effective from April 2027 to March 2031. The terms remain largely unchanged from those announced in February, with a strike price set at £109.90 per MWh (2012 prices).
Sector Updates
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Summary
This contract marks a significant step for Drax in supporting low-carbon energy, while advancements in biomass and biogas projects worldwide illustrate global momentum toward sustainable energy transitions.