Jul 22, 2014

Wind Energy Cheapest Form of Power, According to Denmark

2 min
According to the government of Denmark’s energy agency, onshore wind power is the cheapest form of new electricity generation. This puts it ahe...

According to the government of Denmark’s energy agency, onshore wind power is the cheapest form of new electricity generation. This puts it ahead of both renewable and non-renewable sources, including biomass, coal, and solar power.

The Danish Energy Agency found that onshore wind plants coming online in 2016 will cost around $.05 per kilowatt hour.

While offshore wind remained highly cost-effective, onshore wind still has it beat. Also close in cost are centralized coal, natural gas, and decentralized combined heat and power plants.

Large dedicated biomass plants and converted biomass power stations were found to be the most expensive, with an operation cost of $.15 per kWh.

Even in a scenario where interest rates increased to 10 percent, onshore wind would still be the cheapest. The analysis, the DEA emphasized, was not based on a complete and comprehensive cost-benefit analysis including an assessment of taxes, subsidies, and environmental benefits.

Denmark has been a big investor in wind power for decades—since around the 1970s—and has benefitted from the falling costs. Now, it hosts several big renewable energy companies such as Siemens and Vestas.

Denmark also has highly aggressive renewable energy targets for the near future and wind energy is helping them achieve those targets. In January of this year, the country reported that 54.8 percent of its energy comes from wind power.

Danish Minister for Energy, Climate, and Buildings Rasmus Petersen was pleased to see that Denmark’s renewable energy investments were paying off.  

"Wind power today is cheaper than other forms of energy, not least because of a big commitment and professionalism in the field," Petersen said. "This is true both for researchers, companies and politicians. We need a long-term and stable energy policy to ensure that renewable energy, both today and in the future is the obvious choice."

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

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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