UK energy strategy casts doubt on Drax’s carbon capture project

Shares in turmoil as government's plan seems to rule out North Yorkshire biomass plant from race for subsidies

The energy company Drax will immediately enter talks with the government after a landmark energy strategy cast doubt over its 2bn carbon capture project and plunged the company's share price into turmoil.

The government's wide-ranging plan to secure Britain's energy supplies inadvertently raised questions over the future of one of the country's biggest electricity generators after appearing to rule out the project to capture carbon emissions at the Drax biomass plant in North Yorkshire from the race for subsidies.