Shares in Drax, which converts coal and biomass to energy, plunged 22 per cent on Wednesday after the government announced that it has decided to create support levels for electricity generated from sustainable biomass at existing fossil fuelled power stations on an individual generating unit by unit basis, and not, as previously proposed, on a power station wide basis.
The firm insisted that it is confident that it can transform Drax into a predominantly biomass fuelled generator and that initially it expects to convert three of its six generating nits.
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