Drax Group (LSE:DRX) PLC could receive approval for a multibillion-pound net-zero carbon capture plan from the UK government, according to a report from the Telegraph on Saturday.
Energy Secretary Claire Coutinho is expected to approve a scheme to bolt two massive carbon capture plants onto the North Yorkshire plant's four generating units, the Telegraph reported, potentially removing almost all of its carbon dioxide emissions.
The Telegraph said Coutinho is also due to launch a consultation into how best to extend the subsidy system under which Drax last year received £617 million from consumer bills.
The scheme terminates in 2027 so Coutinho will propose extending it into at least the 2030s, the Telegraph reported, keeping Drax in business for at least several years.
The City liked the news, marking shares up 7.0% at 524p.