Jul 11, 2018

EDF wants to keep majority stake in UK nuclear plants

Nuclear Energy
Sophie Chapman
2 min
Three international banks are courting potential buyers for a 49% stake in the eight nuclear power stations in the UK, the...

Three international banks are courting potential buyers for a 49% stake in the eight nuclear power stations in the UK, the SparkSpread and the Guardian reported.

The French utility, EDF, has announced that it is considering selling part of its shares in the power plants, but clarified that it intended to keep its majority stake.

It is anticipated that EDF are considering the sale due to the financing involved with the construction of the Hinkley Point C nuclear power station in Somerset.

Centrica, the London Stock Exchange-listed energy firm, stated that it aimed to sell its 20% stake in the eight stations.

“Following Centrica’s announcement of its intention to sell its 20 percent stake in EDF Energy’s operating nuclear fleet by 2020, EDF is currently taking steps to support this process and considering different options – while remaining committed to maintain control and majority ownership of the asset,” the utility stated.

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“No decision regarding a potential minority sell-down of its stake has been taken yet,” EDF continued.

The process of selling the stakes has been dubbed Project Newton, those close to the potential deal have claimed.

Reports have claimed that the Chinese government has voiced its interest in the acquisition, becoming a potential buyer.

The government has had previously been subjected to its stake in the Hinkley Point C project due to the UK’s government raising security concerns over the nation’s involvement, the Guardian reported.

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Drax
Biomass
Sustainability
BECCS
Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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