Ipswich: Haven Power celebrates Government biomass subsidy announcement

AN Ipswich-based business electricity supplier is celebrating a boost to its biomass offering following the Government’s announcement on renewables subsidies.

Ipswich-based business electricity supplier Haven Power has a Levy Exempt Power offering which is set to benefit from the long-awaited announcement by Secretary of State Ed Davey on the Renewables Obligation banding levels.

He confirmed that 1.0 Renewables Obligation Certificate or ROCs per megawatt hour (ROC/MWh) will be awarded for generating units that are fully converted to burn biomass from April 2013. Haven’s parent company, Drax, has been actively pursuing a research and development programme on biomass generation,

The Government announcement, and confirmation that Drax plans to fully convert three of its six generating units to burn biomass, means Haven can now offer more renewable energy to its customers. Biomass comprised 7% of the total fuel Drax burnt in 2012

The firm says it is confident it can supply much higher levels of power from 100% renewable sources to business customers and contribute to the UK’s climate change targets.

Chief executive Peter Bennell said: “This announcement is a huge step forward in Drax’s plans to become a predominantly biomass fuelled generator. Drax has worked tirelessly on its biomass burning capability and we have always supported their vision and dedication.

“As more and more businesses look to become more sustainable, an increasing amount of our customers are taking up our Levy Exempt Power option so we’re pleased to be able to continue to offer them a secure supply of renewable energy now and in the future.”

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Drax chief executive Dorothy Thompson said the announcement would have a profound effect on the direction of the firm.

“As a result of our excellent technical progress and the Government’s conclusions on support levels, we are confident that we can transform Drax into a predominantly biomass fuelled generator,” she said.

“Initially we expect to convert three of our six generating units. This transformation will secure a significant number of jobs, not just at Drax but also in the sustainable biomass supply chain.”

Haven Power was sold by former parent company Welsh Power in 2009 to the Drax Group in a deal understood to be valued at around �10.75million.