Drax biomass plan blow as EC launches aid investigation

The hopes of securing lucrative subsidies for the biomass conservion of Drax have suffered a setback following the European Commission started the full state assistance investigation over concerns the payments may be too generous. The Yorkshire-based power plant is in the process of changing from burning coal to biomass, and was given a £1.7bn Government subsidy contract in April 2014 for the third of its six units – matter to state aid approval. The contract would find Drax paid a fixed price of £105 for every megawatt-hour (MWh) of biomass-fired…

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