Drax, Siemens to build UK biomass power plants

23/10/2008 - 7:32

LONDON (Reuters) - Britain's Drax Group said it and Germany's Siemens AG would build three biomass-fired power plants, generating a total 900MW or at least 15 percent of Britain's renewable power.

The project is costed at around 2 billion pounds ($3.3 billion), Drax said in a statement on Thursday. The plants will be built on sites at Immingham and Hull on England's east coast, and near Drax's power station in northern England.

Drax also said its full-year earnings before interest, tax, depreciation and amortization (EBITDA) will be "modestly higher" than the current market consensus, and trading conditions in the commodity markets in which it operates have continued to improve.

(Reporting by Dan Lalor; Editing by Paul Bolding)