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 AES relinquished ownership in August 2003, after falling into £1.3 billion of debt. Independent directors continued the operation to ensure security of supply. In December 2005, after refinancing, ownership passed to the Drax Group. Separate acquisition offers from International Power, private equity group Texas Pacific, and a private equity backed bid from Constellation Energy were rejected for undervaluing the company. The company's valuation subsequently increased to 2005 as a result of rising electricity prices, and on 15 December 2005 Drax Group plc floated its shares on the London Stock Exchange, issuing £400 million worth of shares, on a valuation of