Drax Signs U.K. Contract for Difference Covering Drax Power Station

Dow Jones

2025/11/05

By Adam Whittaker

Drax said it has signed a low-carbon contract for difference with the U.K. government to cover the four biomas units at its Drax Power Station.

Low-carbon contracts for difference are a U.K. program to encourage investment in renewable energy by protecting developers with high upfront costs from volatile electricity prices by guaranteeing a sale price.

The U.K. power-generation company said the contract covers April 2027 to March 2031, with a strike price of 109.90 pounds ($143) a megawatt hour.

The signed contract contains no significant changes from the terms agreed in February, Drax said.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

November 05, 2025 02:32 ET (07:32 GMT)

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