10th June 2008

Petcoke at Drax Power StationBy Ian Wright

Houston

2 [Petcoke at Drax Power Station]Drax Power Limited

Introduction to Drax Power Station

► Drax Power Station is the largest, cleanest and most efficient coal fired power station in Western Europe

► The generating capacity of the station is 4,000MW. It provides approx. 7% of the UK’s electricity needs.

► Drax currently burns 10mt coal per year. This is made up of 50% indigenous coal and 50% imported coal (including petcoke).

► Flue Gas Desulphurisation fitted on all Units.

► We have the lowest emissions per MW of all UK Coal Fired Power Stations.

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History of Drax

► Built in two phases : Three Units Commissioned in the mid 70’s and the other three Units Commissioned in the mid 80’s

► Government owned up to 1990

► Privatised in 1990 – owned by National Power

► AES took over in 1999

► Became an Independent Utility in 2003

► Now a listed company on the London Stock Exchange: Drax Group plc

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Drax and the UK EA Constraints

► We operate to UK and EU Laws on emissions and our government are committed to Kyoto protocol on CO2 reduction.

► We are restricted on SOx, NOx, CO2, particulates, metal emissions, to air , water and land.

► In 2008 the Large Combustion Plant Directive (LCPD) was implemented – tighter emission limits on NOx and SOx

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Coal Consumption - 2007

2007 Coal Sources (by Country)

Colombia Indonesia Petcoke

Poland Russia South Africa

UK USA

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Where we are located.

► Full width text page

► Full width text page

Drax Power Station

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Port Capacity in the UK

IMMINGHAM

2mt per year with an option of an additional 1mt

PORT OF TYNE

1mt per year.

HULL

750kt per year

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PETCOKE BLENDING

BUNKER

MILL

BOILERFURNACE

CONVEYOR

Coal

Petcoke/coal Blending Plant

Underground hoppers

Weigher

Weigher

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Alternative Fuels

► Plan is to burn up to 15% of Biomass by 2010

1. Wood Pellets

2. Sunflower Pellets

► Authorised to burn up to 600kt of Petcoke

► 2007 consumption - 140kt

► 2008 consumption - approx 280kt

► 2009 consumption - 400kt ?

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Petcoke

► Fully authorised to burn Petcoke commercially across all Units up to 600kt per year.

► The throughput will be dependant on the price relative to Coal.

► Looking for a locked in price differential against API 2.

► Petcoke:

► Up to 7% sulphur

► Vanadium less than 1250ppm

► Nickel less than 270ppm

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Additional Costs when burning Petcoke ?

► Shipping Costs

► Smaller vessels ► Lower Bulk Density material

► UK Transport Costs

► Less tonnage per train

► Higher Sulphur Material

► Increase in FGD costs► Works power► Limestone► Gypsum Handling► Uses up potential saleable sulphur credits

► Ash Quality

► Higher Carbon In Ash► Lower revenue

► Emissions‘

► Higher Sulphur► NOx ?

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Value of Petcoke to Drax

► Commercial advantage over Coal

► Balances against low sulphur Russian Coals

► High CV Compliments Biomass Burn

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Drax Power Station

Thank You for your attention………