Drax, the owner of western Europe’s largest coal-fired power station, unveiled a £2bn renewable energy investment plan in an effort to diversify its business and cash in on government subsidies.

Drax said it planned to build three 300MW power plants that would burn biomass, including energy crops and agricultural or forestry waste. The plants will be built in partnership with Siemens of Germany, with Drax owning 60 per cent of the project and operating the plants and Siemens owning 40 per cent and supplying the technology.