Drax and Siemens plan three biomass plants worth £2bn

Drax Group and Siemens Project Ventures have announced plans to build three 300MW biomass-fired power plants at a cost of £2bn, as part of a joint development programme.

In a statement, Drax said it had not yet committed to construction contracts or financing for any of the new plants, but hoped to finalise arrangements over the next 12 to 18 months.

Drax will operate and manage the plants, in which it will hold a 60% stake, while it is proposed that Siemens turbine technology will be used.

Construction of the first plant is due to begin in 2010, with the first plant expected to be operational in 2014.

The three plants are expected to supply at least 15% of the UK's renewable power and 10% of its total electricity once they are built.

Drax already runs one biomass-fired plant in the UK - the Drax Power Station in Yorkshire. The power firm said its project to increase the plant's co-firing capability to 500MW was well underway and scheduled to be completed in mid-2010, making it  the largest co-firing biomass plant in the world.