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 on a continuous basis. North America was expected to be the source of the vast majority of the biomass, although some would be domestically sourced willow and elephant grass. Drax Group's decision was enabled by a new UK government policy, effective in April 2013, to award 1.0 tradable ROCs (renewable obligation certificates) per megawatt of power generation from coal power plants that are fully converted to burn biomass; CEO Dorothy Thompson stated the company intended to become a predominately biomass-fuelled energy producer. By April 2013 financing for the scheme include £190 million through sale of shares, £100 million from Prudential/