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 M&G UK Companies Financing Fund, £50 million from the UK Green Investment Bank, and £75 million Friends Life (underwritten by HM Treasury), as well as a £400 million credit facility. As of 2013 there were plans to install 1 million tonne per year wood pellets pelletizing plants at Morehouse Parish, Louisiana, and Gloster, Mississippi, which would be shipped by road and rail to the port of Baton Rouge, Louisiana then shipped in 50,000-tonne cargo ships to UK. In the financial report for 2013, Drax announced that an additional 2 million tons pelletisation capacity was being considered, likely to be built