UK generator Drax has lost its bid for a contract-for-difference(CfD)subsidy to convert its unit 3 from coal to biomass,after the court of appeal overturned a high court ruling last month in Drax’s favour. The court of appeal ruled with the UK’s department for energy and climate change,which ultimately rejected Drax application for the“investment contract”(IC)in April,and dismissed Drax’s application for judicial review.Drax“will not appeal against this decision”. The generator will now“consider its options for the full conversion of this unit”,Drax said.The 645MW unit remains eligible for the financially inferior Renewables Obligation subsidy scheme,and the company said last month that if it was left without a CfD it would seek to convert the unit –which is already co-firing at least 85pc biomass–in the fourth quarter of this year.
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