Drax signs new ‘low-carbon CfD’ with UK government
Drax Group has entered into a new low-carbon dispatchable contract for difference (CfD) with the UK government’s Low Carbon Contracts Company. The deal covers all four of Drax Power Station’s biomass units for the period from April 2027 to March 2031.
The updated agreement, consistent with the terms first announced in February, establishes a strike price of £109.90 per MWh (2012 values). The contract supports the UK’s ongoing efforts to secure clean and reliable power generation while reducing carbon emissions.
Renewable energy developments in other regions
Scotland’s Cabinet Secretary for Climate Action and Energy, Gillian Martin MSP, visited BrewDog’s anaerobic digestion and biomethane plant in Ellon, highlighting local progress in biogas production.
In Singapore, Tuas Power announced plans to convert its Tembusu Multi-Utilities Complex (TMUC) on Jurong Island to operate entirely on renewable biomass by 2028 — two decades ahead of the country’s decarbonisation target.
Egypt’s Ministry of Environment, together with the Bioenergy Foundation for Sustainable Development and Italian energy firm Eni, signed a cooperation agreement to strengthen biogas output and promote the national clean energy transition.
“The leading magazine for the biomass, biogas and biopower sector.”
Author’s note: Drax’s new agreement reinforces its position in the UK’s renewable energy strategy and highlights a wider global commitment to accelerating low-carbon power generation.