Drax Power and EWS Energy agreed a new commercial approach on 12 October 2007 that will strengthen and develop the relationship between the UK's leading electricity generator and the dedicated rail operator for the electricity supply industry.

While the terms of the new commercial approach are confidential, the agreement enables Drax Power to use EWS Energy coal train services as a key component of their supply chain for the long term, delivering coal to Drax power station in Yorkshire from a number of supply points in England and Scotland.

In addition Drax Power and EWS Energy are jointly investigating the viability of moving biomass material by rail to Drax power station.

Trials are currently underway and success will potentially open a new market to rail freight and enable Drax Power to increase the amount of electricity created from a renewable source and further reduce CO2 emissions.

Paul Bates, EWS Energy Managing Director, said: “Drax Power is a crucial asset to UK plc and I am very pleased that we will develop and strengthen our relationship over the coming years. While we are delighted to be a key player in their coal supply chain, we are particularly pleased to be part of Drax Power’s research into the movement of biomass by rail."

The new contract from Drax Power follows recent contract awards to EWS Energy by RWE npower and EDF Energy.