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 State for Energy and Climate Change Ed Miliband announced plans to require all UK coal-fired power stations should be fitted with CCS technology by the early 2020s or face closure. In 2012 a CCS project at Drax was shortlisted for government funding. In 2013 the White Rose Carbon Capture and Storage project (formerly the UK OXY CCS project) was shortlisted for the UK government's CCS scheme and in late 2013 was awarded a two-year FEED contract (Front End Engineering Design) for the CCS project. As of June 2014, Drax is engaged in a joint venture with Alstom and BOC to