Environmentalists have raised concerns over news that wood-burning power station Drax will continue to receive subsidies but welcomed a reduction in payments.
The Government has announced that from 2027, when the existing payments for the North Yorkshire biomass power plant are due to run out, a new support scheme will come into effect until 2031 which reduces electricity generation, halves subsidies and imposes new sustainability requirements.
Ministers also said unabated biomass is not a long-term solution, and they are reviewing the role biomass fitted with technology to capture and store carbon emissions could play in cutting UK climate pollution to net zero by 2050.
Campaigners have long questioned the role of biomass in cutting carbon emissions and accused Drax of sourcing the wood pellets used in its plant from environmentally important forests, although the company has said it is confident its biomass is sustainable and legally harvested.
It’s disappointing that the UK’s biggest carbon emitter is being given yet more public money at a cost to people and the environment
Responding to the announcement, Clare Oxborrow, nature campaigner at Friends of the Earth, said that at a time when funding is being cut or curtailed in many areas, “it’s disappointing that the UK’s biggest carbon emitter is being given yet more public money at a cost to people and the environment”.
“However, this decision represents a significant roll-back of government support for Drax, with its funding slashed by half and the introduction of much tighter sustainability requirements,” she said.
But she added: “Given the net zero economy is the UK’s fastest growing sector, cash would be better spent transitioning workers out of polluting jobs into the sustainable, clean industries of the future – this is good for our economy, communities and our ailing planet.”
Rick Parfett, senior policy adviser on climate at WWF-UK, said: “Forests are crucial to preventing climate breakdown by storing carbon, so burning trees for energy will never make sense.
“The Government’s statement that this isn’t a long-term solution and their commitment to putting in place credible low-carbon alternatives are welcome.
“But it’s deeply concerning to see taxpayer money continuing to flow to the UK’s single largest polluter when we know we can decarbonise the power sector without it.”
He called for stiff penalties for non-compliance and regulators who are fully empowered to hold the company to account, adding that the Government should focus on rolling out “genuine renewables” and insulating homes to cut carbon and bills.
Green Party co-leader Adrian Ramsay also called for funds to be redirected towards insulation, saying: “Drax has benefitted from over £6 billion in subsidies since 2012 and neither taxpayers nor the environment can afford a penny more.
“The money should be used to help fund a national scheme of home insulation that would cut people’s energy bills and help to reduce energy use.”
The new subsidies end after four years, are much lower than previously enjoyed, and with far more restrictions
But Frankie Mayo, analyst with energy think tank Ember, said the announcement is “good news for consumers, and bad news for Drax”.
“The new subsidies end after four years, are much lower than previously enjoyed, and with far more restrictions.
“This is one way to reduce consumer bills; in the long term it is important that the Government forges ahead with building a modern power system to bring down costs for households for good.”
And Sue Ferns, senior deputy general secretary of the Prospect trade union, responding to the Government’s announcement of changes to subsidy arrangements at Drax, said the new agreement provides savings for consumer as well as security for the workers at Drax and for energy supplies.
“However, it is right that the Government reviews the technology being used to ensure that a sustainable, low-carbon solution is found which guarantees the long-term future of the plan,” she said.
“In the meantime, Prospect is working with Drax to ensure that it has the skilled workforce arrangements in place to be able to provide the required intermittent support for the grid.”
