Methodology Estimating subsidies for deploying carbon capture at Drax biomass power station

Ember updates its estimate for the subsidies needed to deploy carbon capture at Drax, increasing the average cost per BECCS unit to £591 million in 2023 prices. The methodology utilizes a dual-Contract for Difference (CfD) model covering both electricity (CfDe) and carbon (CfDc), incorporating UK Government projected wholesale electricity prices and carbon market values. The analysis assumes a phased deployment of four units between 2030 and 2045, noting that costs remain uncertain due to a lack of commercial-scale power-BECCS projects.

• Ember has increased its estimate for the annual subsidies required per BECCS unit at Drax to an average of £591 million in 2023 prices, up from a January 2024 estimate of £425 million per unit.
• The subsidy calculation uses a dual-CfD mechanism consisting of a Contract for Difference for electricity (CfDe) and one for carbon (CfDc), each with its own Reference and Strike Price; carbon Transport & Storage (T&S) costs are excluded as they are expected to be handled outside the CfD.
• For the CfDe component, the Strike Price is set at £147/MWh (in 2023 prices), based on the 2027-31 large-scale biomass generators arrangements, while the Reference Price is based on the UK Government's projected mean wholesale price for baseload electricity from 2030 to 2050.
• For the CfDc component, the Strike Price is proxied using the UK Government's target maximum greenhouse gas removal price of £200 per tonne of CO2e, though other estimates suggest higher costs, such as the Climate Change Committee's estimate of £344 per tonne in 2030.
• The analysis assumes a deployment timeline where Drax converts one unit in 2030, a second in 2035, a third in 2040, and a fourth in 2045, although an accelerated timeline proposed by Drax could increase total subsidies between 2030 and 2050.

APA

Ember (n.d.). Methodology Estimating subsidies for deploying carbon capture at Drax biomass power station. https://ember-energy.org/app/uploads/2025/11/GGRS-Methodology-1.pdf

Chicago

Ember. Methodology Estimating subsidies for deploying carbon capture at Drax biomass power station. n.d. https://ember-energy.org/app/uploads/2025/11/GGRS-Methodology-1.pdf.

Wikipedia

{{cite report |author=Ember |title=Methodology Estimating subsidies for deploying carbon capture at Drax biomass power station |url=https://ember-energy.org/app/uploads/2025/11/GGRS-Methodology-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{emberndmethodology, author = {{Ember}}, title = {{Methodology Estimating subsidies for deploying carbon capture at Drax biomass power station}}, institution = {Ember}, url = {https://ember-energy.org/app/uploads/2025/11/GGRS-Methodology-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }