Drax Plan to Switch to Wood From Coal May Get $160 Million LoanLouise Downing
The European Investment Bank is considering whether to approve a loan to Drax Group Plc for its plan to convert Britain’s largest coal-fired power station to burn wood.
The bank may lend 123 million euros ($160 million) to the project that will help Drax turn half the six units at its site in Selby, northeast England, to burn biomass in the next three to four years, the EIB said today in a statement on its website.
Drax already has received funding from the U.K.’s Green Investment Bank alongside Prudential Plc and the M&G U.K. Companies Financing Fund toward its $1 billion plan. RWE AG of Germany and the Dutch utility Dong Energy A/S are also switching to renewable fuels as they strive to meet European Union air-pollution standards.