Drax power station build a 626 MW oxygen-fuelled combustion power station adjacent to the existing Drax site. National Grid would simultaneously construct a pipeline to transport to the Yorkshire coast for sequestration. In July 2014 the project was awarded €300 million funding from the European Commission. In September 2015 Drax announced it would not be making any further investments into the CCS scheme after completion of the feasibility study because negative changes to government support for renewable energy had made the project too financially risky, plus drops in the company's share price due to the same uncertainty had reduced Drax's ability to raise
Drax power station funds. Front End Engineering Design was expected to continue under Alstom and BOC with the project still being hosted at Drax. In late 2015 the UK Government withdrew its potential financial support for CCS projects – up to £1 billion of funding, reversing support promised in the governing party's 2015 election manifesto. As a result, Leigh Hackett, CEO of Capture Power stated that "[I]t is difficult to imagine its continuation in the absence of crucial government support". In May 2018, Drax announced a new Carbon Capture and Storage pilot scheme that it would undertake in conjunction with the Leeds-based firm,