The future of the Drax Power Station as a biomass facility has been secured after a deal was made with the taxman.
Plant owners negotiated a deal with HM Revenue and Customs, after changes to tax legislation initially left the site £180 million out of pocket on its Eurobond financing structure.
After much legal wrangling, Drax is to receive £117 million immediately, with the remaining £63 million to be offset against further tax charges in the coming years.
The windfall will be used to help Drax convert from a coal-fired facility to biomass combustion.
"If we receive appropriate regulatory support, this cash will form an integral part of the capital required to deliver our biomass strategy, which in turn will provide the UK with cost effective, reliable and flexible renewable electricity," said Tony Quinlan, finance director of Drax.
RNE npower recently revealed that converting to biomass is helping the facility to avoid closure in 2015.
Typical Guttridge equipment used in the biomass industry includes:
