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 facilities began in 2009 at the Port of Tyne and at Drax. In the 2000s Drax Group applied for planning permission to build a new 300 MW power station, fuelled entirely by biomass, to the north of the station; the Ouse Renewable Energy Plant was expected to burn 1,400,000 tonnes of biomass each year, saving 1,850,000 tonnes of emissions, and expected to create 850 construction jobs and 150 permanent jobs created once opened, through direct and contract employment. Plans were submitted to the Department of Energy and Climate Change in July 2009 for review; if permission was granted, construction was