Drax signs new ‘low-carbon CfD’ with UK government

Drax Signs New 'Low-Carbon CfD' with UK Government

Drax Group has secured a new 'low-carbon dispatchable' contract for difference (CfD) with the UK government's Low Carbon Contracts Company. This contract covers all four of its biomass units at Drax Power Station, running from April 2027 to March 2031. The terms largely remain the same as those announced earlier in February, with a strike price set at £109.90 per MWh (2012 basis).

Industry Developments in Biomass and Biogas

Scotland’s Cabinet Secretary for Climate Action and Energy, Gillian Martin MSP, recently visited BrewDog’s anaerobic digestion (AD) and biomethane facility in Ellon, showcasing advancements in renewable energy infrastructure.

Tuas Power revealed plans to convert its Tembusu Multi-Utilities Complex (TMUC) on Jurong Island to operate entirely on renewable biomass by 2028, accelerating Singapore’s decarbonization goal by 22 years.

In Egypt, the Ministry of Environment, through the Bioenergy Foundation for Sustainable Development, signed a cooperation agreement with Italian energy company Eni. The deal aims to promote biogas production and support the country’s clean energy transition.

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Author’s summary: Drax’s new UK government contract secures biomass power through 2031, while international collaborations advance biogas and renewable energy projects globally.

Bioenergy Insight — 2025-11-06

Drax Signs New 'Low-Carbon CfD' with UK Government

Industry Developments in Biomass and Biogas

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