Drax Group plc (LON:DRX) has announced a low-carbon dispatchable CfD agreement.
Highlights
· Heads of terms agreed with UK Gov. for operation of Drax Power Station (DPS) post 2027
– CfD scheme with a strike price of £113/MWh (2012) applied to all four biomass units
– c.6TWh pa generation collar with flexible operation to support high and low demand periods
– Contract period Apr-27 to Mar-31
– Baringa estimate £1.6-3.1 billion of saving to consumers(1)
· Targeting average Adj. EBITDA of £100-200 million pa from DPS over agreement period
· Continuing to target >£500 million Adj. EBITDA pa post 2027 from FlexGen and Pellet Prod.