Drax signs contract with Doos
1 October 2008
Drax Group plc
(Symbol:DRX)
DRAX SIGNS CONTRACT WITH DOOSAN BABCOCK
FOR EPC SUPPLY OF BIOMASS CO-FIRING SYSTEMS
Drax Power Limited ('Drax') has announced today that it has signed a £10 million ($18 million) Engineering, Procurement and Construction ('EPC') contract with Doosan Babcock Energy Limited ('Doosan Babcock') to supply direct injection biomass co-firing systems to all six coal-fired generating units at the 4,000MW Drax Power Station in North Yorkshire.
Co-firing involves the mixing and burning of renewable biomass materials with coal and, given the carbon neutral status of biomass, is a recognised carbon abatement technology that has significant potential to reduce carbon dioxide ('CO2') emissions from coal-fired power stations. The direct injection firing systems represent a major component of the new co-firing facility at Drax and are designed to receive and transport processed biomass materials to the power station's coal-fired boilers.
On completion, the biomass co-firing facility will be the largest of its type in the world, which alongside Drax's existing co-firing capability will provide a total of 500MW of renewable electricity, or the equivalent output of over 600 wind turbines. The biomass co-firing facility will reduce Drax Power Station's emissions of CO2 by over two and a half million tonnes per annum supporting Drax's commitment to tackling climate change by reducing its CO2 emissions.
The contract for the direct injection systems has been awarded following a competitive tender process and is a significant project for Doosan Babcock. Work will commence immediately with the detailed engineering design and procurement of key items of equipment. Installation of the direct injection systems is scheduled to be complete towards the end of 2009. All six generating units will be commissioned in parallel with the delivery of the biomass handling and processing plant programme.
Dorothy Thompson, Chief Executive of Drax, said:
'This contract marks the next critical step in the execution of our co-firing project and we are very pleased to be furthering our working relationship with Doosan Babcock.
'In August, we were pleased to announce that the identification of biomass sources in excess of our direct injection project requirements meant that we could run the new facility alongside our existing co-firing capability to give us a total renewable capacity of 500MW, making us the largest single site renewable generator in the UK.
'At Drax, we are only too well aware of the need to tackle climate change and the competence we have developed in biomass procurement and project execution means that we are able to play our part in the move towards a low carbon economy, whilst at the same time delivering reliable and secure supplies of electricity.'
Iain Miller, Chief Executive Officer, Doosan Babcock, said:
'We are delighted to be continuing our long-standing relationship with Drax. This is an important project that delivers a cost-effective low carbon technology solution in support of Drax's commitment to tackle climate change by reducing CO2 emissions'.
Drax Power Station is also making good progress with its turbine upgrade project, with the installation of the new turbine modules already completed on one-third of its generating units. When complete across all six generating units the new turbines will deliver a further saving of one million tonnes in CO2 emissions. Combined with achieving 12.5% output from renewables, Drax is set to reduce its annual emissions of CO2 by over 15% (based on current output levels) by 2011.
Pinsent Masons were the legal advisers to Drax Power Limited.
For more information, please contact:
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Melanie Wedgbury
Head of External Affairs, Drax Power
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+44(0) 1757 612438
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Matt Tapsell
Doosan Babcock
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+44 (0) 1293 584887
mtapsell@doosanbabcock.com
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Katharina Lindemann
Hill & Knowlton on behalf of Doosan Babcock
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+44 (0) 207 413 3092
klindemann@hillandknowlton.com
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-ENDS-
Notes to Editors
About Drax Power Limited
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Drax Power Limited is the operating subsidiary of Drax Group plc and the owner of Drax Power Station, the largest, cleanest and most efficient coal fired power station in the UK The output capacity from the station's six generators is 4,000MW. At current output levels it meets some 7% of the UK's electricity needs.
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In May 2008, Drax announced that it had signed a contract with Alstom to build the main processing works associated with the 400MW direct injection facility.
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Drax Group is one of the largest independent generating companies in the country. For more information visit www.draxgroup.plc.uk
This information is provided by RNS
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