Energy firm Drax has begun preliminary work on a new underground pumped storage hydro plant at its existing Crauchan facility, aiming to bring it online by 2030.
Following the announcement, Liberum analyst Sam Wahab dubbed Drax a ‘buy,’ outlining: “If the UK has any chance of achieving net zero by 2050, its Drax.
“The company has seen the most pronounced reduction in emissions of any listed renewables company in Europe,” he added.
Drax is now using samples taken from a 70m deep hole to test the site’s viability for the proposed 600MW plant, which will use excess energy from the UK grid to pump water upwards, ready to be released to create electricity when demand increases again.
While the firm is still waiting for confirmation from the Scottish government that the project can go ahead, Drax local asset director Ian Kinnaird said: “This is a significant moment in the expansion of Cruachan.”
After being given the green light, expected by mid-2023, Drax will begin a six-year construction period, with the project costing around £500mln and the power station being built within Argyll’s highest mountain, Ben Crauchan.
According to researchers at Imperial College London and Apricum, UK energy storage capacity will need to grow by nearly ten times in the next 30 years, from 3GW in 2020 to roughly 30GW.
The new development at Crauchan would take the site’s storage capacity to just over 1GW.