Economics
Drax Jumps to 5-Month High After EU Approves Biomass Subsidy
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Cooling towers stand within the Drax Group Plc.'s power station complex near Selby, U.K., on Wednesday, May 4, 2016.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Shares in Drax Group Plc surged to the highest since July after the European Union approved a U.K. government subsidy to support the conversion of one of its coal-fired units to biomass.
The project’s contribution to increasing the share of renewable energy produced in the U.K. outweighs any potential distortions of competition that could be triggered by government support, the EU regulator said in an e-mailed statement on Monday. The European Commission opened an investigation in January to check that the subsidy wouldn’t distort competition.