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 been converted, and was reported to be functioning correctly; by 2013 the conversion of the second and third units was scheduled for 2014 and during or before 2016 respectively. The second unit was converted by May 2014, initially co-firing an 85% biomass/coal mix due to limited biomass supply. In April 2014 Drax was awarded a renewable contract for difference (CFD) subsidy for biomass based power generation on another converted coal firing unit, but a third unit, which had been previously marked as eligible for CFD funding was excluded; Drax Group then legally challenged the decision, initially obtaining a ruling in