Drax powers ahead with green plan

The plant aims to increase its use of renewable fuels

Europe's largest coal-fired power station has revealed it is ahead of schedule with plans to improve efficiency and cut carbon emissions.

Drax said it had made an early start to turbine upgrades and would start installing its first high-pressure turbine this month.

The site at Selby in North Yorkshire is the UK's biggest producer of CO2.

When complete, the project is expected to cut CO2 emissions by one million tonnes a year, it said.

The group plans to cut CO2 output by replacing much more of the coal it burns with renewable plant biomass, which is seen as harmless to the environment because it absorbs as much CO2 while growing, as it produces during burning.

The company has already set itself a target for 2009 of generating 10% of its electricity by burning biomass, such as willow sticks or elephant grass.

Chief executive Dorothy Thompson said the station had recently been burning sunflower and olive waste and had briefly taken the level of biomass to 4%.

The company also revealed half-year profits up 21% to £288m as it continued to benefit from supply deals agreed when electricity prices were higher.

But it warned that margins had tightened as coal prices rose amid increased demand from China and India.