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 £2.3 billion. In 2009, Drax Group submitted a planning application for the 300 MW biomass Ouse Renewable Energy Plant next to the power station. Government approval was obtained in mid 2011. In February 2012 the company ceased planning development of the plant, citing logistics costs, and uncertainty concerning government financial support for biomass. In 2006 Drax Power Limited, in response to a government consultation, stated they were sponsoring development studies into carbon capture and storage (CCS), but noted that it was not then commercially viable, with costs comparable with nuclear or offshore wind power. On 17 June 2009, Secretary of