Almost 50 years of coal-fired electricity generation will come to an end at the 海角视频’s largest conventional power station – Drax – next year.
The decision, announced as the annual results were published today, is described as a landmark moment in the 海角视频’s efforts to achieve Net Zero by 2050, and a huge milestone in the company’s own ambition to become carbon negative by 2030.
It comes with a huge jobs cost however, with one third of the 640 operational staff - between 200 and 230 - anticipated to go.
March 2021 has been set as the key date, four years in advance of the government’s deadline, having gradually changed out to biomass in a £750 million project that has spanned this decade.
For years Drax turned to the Humber’s largest port, Immingham, for the bulk of its imported supply. Now a world-leading £130-million renewable fuels terminal dominates the skyline with towering silos holding forest waste shipped from US plants, with bespoke rail wagons transporting the cargo to the North Yorkshire plant.
Drax chief executive Will Gardiner said: “Ending the use of coal at Drax is a landmark in our continued efforts to transform the business and become a world-leading carbon negative company by 2030. Drax’s journey away from coal began some years ago and I’m proud to say we’re going to finish the job well ahead of the Government’s 2025 deadline.
“By using sustainable biomass we have not only continued generating the secure power millions of homes and businesses rely on, we have also played a significant role in enabling the 海角视频’s power system to decarbonise faster than any other in the world.
“Having pioneered ground-breaking biomass technology, we’re now planning to go further by using bioenergy with carbon capture and storage to achieve our ambition of being carbon negative by 2030, making an even greater contribution to global efforts to tackle the climate crisis.”
Most Read
This involves a huge scheme for the whole of the Humber, helping tackle the region’s poor performance on pollution, sequestering harmful emissions from the power station and other heavy industry in depleted oil and gas caverns beneath the North Sea.
Drax, near Selby, first started generating electricity using coal in the Seventies. Once the second half of the power station was built in the Eighties, it became the largest power station in the 海角视频 with the capacity to generate electricity for six million households.
Four of the power station’s six generating units have been converted to use sustainable biomass, delivering carbon savings of more than 80 per cent compared to when they used coal.
This has transformed Drax to become the 海角视频’s largest renewable power generator and the biggest decarbonisation project in Europe.
The decision to stop using coal comes after a comprehensive review of its operations. Drax does not expect to use coal after March 2021, but will ensure its two remaining coal units remain available until September 2022 in line with its existing capacity market agreements.
Plans to convert to gas are currently on hold after environmental campaigners questioned the government’s approvals.
Biomass operations are heavily automated from rail unloading to firing. Unions and employee representatives are being consulted over the coming months and support is being provided to those affected.
Don’t miss
ABP has also been approached about the potential impact on what has been a significantly slimmed-down operation.
Mr Gardiner added: “Stopping using coal is the right decision for our business, our communities and the environment, but it will have an impact on some of our employees, which will be difficult for them and their families.
“In making the decision for the 海角视频 to stop using coal and to decarbonise the economy, it’s vital that the impact on people across the North is recognised and steps are taken to ensure that they have the skills needed for the new jobs of the future.”
Drax Group reported an earnings hike of 61 per cent, from £250 million to £410 million, for 2019, with operating profit up from £60 million to £62 million.
It came on a turnover of £4.7 billion, up around 11 per cent.
Henri Murison, director of the Northern Powerhouse Partnership, said: “The decision by Drax to end almost 50 years of coal production is a landmark moment in the 海角视频’s efforts to achieve net zero by 2050 and a major milestone towards delivering Drax’s world-leading ambition to become carbon negative by 2030.
“Northern Powerhouse Partnership will be supporting Drax in ensuring there is a Zero Carbon Skills Taskforce to help people in the North gain the skills and expertise required to seize the opportunities as the 海角视频 moves towards a net zero carbon economy and we would urge the Government to appoint a senior minister to be part of this.
“The energy sector has been and will continue to be a major source of jobs and economic opportunity in the Northern Powerhouse and the pioneering work undertaken by Drax demonstrates how clusters like on the Humber and in Teesside together can lead the nation on Carbon Capture and Storage, enabling a hydrogen economy and contribute to this vital opportunity.”