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European Commission grants state aid clearance for Drax biomass conversion

The European Commission has given state aid approval for the conversion of a third unit at Drax from coal to biomass. The approval was announced on Monday 19 December, following an investigation launched in January 2016 into the UK government supporting the conversion with a contract for difference.

The commission concluded that the project’s contribution to increasing the share of renewable energy produced in the UK outweighed any potential distortions of competition. Drax confirmed that the unit will commence operating as a fully converted biomass unit in the coming days, having previously operated as a co-firing unit under the Renewables Obligation.

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