Drax Aims for $12.5 Billion US Power Push Drawn by Subsidies

Drax Group Plc, operator of the UK’s largest power station, aims to invest $12.5 billion building new biomass power plants in the US over the next decade, taking advantage of generous subsidies.

The first plant will need between $2 billion to $3.5 billion in investment and could be ready by 2030, Chief Executive Officer Will Gardiner said in an interview. Twenty further sites are being evaluated for future projects to be built under Drax’s newly launched US-based subsidiary Elimini, according to a press statement.

The power plants will burn wood to generate electricity and capture the emissions produced. However, ...