拢225m project to convert half of Drax coal-fired power station into biomass is set to be the next project to receive UK Guarantee
Ministers have agreed to guarantee a 拢75m portion of the 拢225m private financing of the project to convert half of the Drax coal-fired power station into a biomass plant, according to reports.
The report in the Financial Times said the 拢225m project to convert half of Britain鈥檚 biggest coal-fired power station into a biomass plant would be the next project to be given a government guarantee through the 拢40bn UK Guarantees scheme.
The scheme involves converting three of the six generators at the Drax power plant to biomass.
According to the FT, the Treasury is set to guarantee 拢75m of debt on the project, with the rest of the funding coming from private investors and the state-owned Green Investment Bank.
It would be only the second project approved under the UK Guarantee scheme, which was in a bid to accelerate large infrastructure projects.
Last week it emerged that the first project earmarked for a guarantee 鈥� a 拢1bn order of new trains for London鈥檚 Crossrail line 鈥� would now proceed without a guarantee, after a deal was struck between government and the Mayor of London to finance the contract wholly with public money.
The move means just one project - the proposed extension of the - has now be granted a UK Guarantee since the scheme was nearly nine months ago.
According to the FT, a further 14 projects have now 鈥減re-qualified鈥� for support through the scheme, with an expectation that more will be announced in the coming weeks.
EDF have approached Treasury about the possibility of a guarantee through the scheme for its 拢10bn Hinkley nuclear new build programme.
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