Drax Signs New ‘Low-Carbon CfD’ with UK Government
Drax Group has agreed on a new 'low-carbon dispatchable' contract for difference (CfD) with the UK government's Low Carbon Contracts Company. This contract, effective from April 2027 to March 2031, includes all four biomass units at Drax Power Station. The strike price is set at £109.90 per MWh (2012 prices), mostly under the same terms announced earlier in February.
Industry Developments
Scotland’s Cabinet Secretary for Climate Action and Energy, Gillian Martin MSP, recently visited BrewDog’s anaerobic digestion (AD) and biomethane facility in Ellon, highlighting progress in renewable energy technologies.
Regional Renewable Energy Initiatives
- Tuas Power, Singapore: Plans to convert its Tembusu Multi-Utilities Complex (TMUC) on Jurong Island to run entirely on renewable biomass by 2028, which is 22 years ahead of Singapore’s national decarbonisation target.
- Egypt’s Ministry of Environment: Signed a cooperation agreement with Italian energy company Eni through the Bioenergy Foundation for Sustainable Development to advance biogas production and support the country's clean energy transition.
"Scotland’s Cabinet Secretary for Climate Action and Energy, Gillian Martin MSP, has visited BrewDog’s anaerobic digestion (AD) and biomethane facility in Ellon."
"Tuas Power has announced plans to convert its Tembusu Multi-Utilities Complex (TMUC) on Jurong Island to run entirely on renewable biomass by 2028 — 22 years ahead of Singapore’s national decarbonisation timeline."
"Egypt’s Ministry of Environment, through the Bioenergy Foundation for Sustainable Development, has signed a cooperation agreement with Italian energy company Eni to advance biogas production and support the country’s clean energy transition."
Author's summary: Drax renews its commitment to low-carbon biomass energy with a new contract, while global efforts in biogas and biomass accelerate ahead of regional climate targets.