HomeBusinessMPs Scrutinize Billions in Government Support for UK's Largest Power Plant

MPs Scrutinize Billions in Government Support for UK’s Largest Power Plant

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The UK government’s billions in subsidies for the Drax power plant have sparked scrutiny, with MPs questioning the sustainability of biomass fuel and the value for taxpayers.

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The UK government has provided approximately £22 billion of public money to businesses and households that burn biomass pellets as fuel over the past three years, including £6.5 billion for the owner of the Drax power plant.

Despite generating about 5% of the UK’s electricity, the power plant is expected to receive more than £10 billion in renewable energy subsidies between 2015 and the end of 2026.

The Public Accounts Committee has expressed concerns that biomass generators have been left to ‘mark their own homework’ when it comes to proving that their fuel meets the sustainability standards set by the subsidy scheme. The committee is not convinced by the government’s plan to extend subsidies beyond the 2026 deadline for a further five years while investing in carbon capture technology.

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DATACARD
Understanding Biomass Generators

Biomass generators convert organic matter into electricity, heat, or biofuels.

They use non-renewable biomass sources like wood waste, agricultural residues, and municipal solid waste.

The process involves burning the biomass to produce steam, which drives a turbine to generate power.

Biomass generators offer a renewable energy alternative, reducing greenhouse gas emissions compared to fossil fuels.

According to the US Energy Information Administration, 'biomass accounted for 5% of global electricity generation in 2020.'

The biomass industry has been plagued by controversy, including a £25 million fine for the Drax power plant after an investigation found ‘an absence of adequate data governance and controls‘ to monitor the sourcing of biomass pellets. The company was also accused of misleading the public, government, and its regulator over its sourcing of wood for biomass pellets.

Sir Geoffrey Clifton-Brown, MP and chair of the committee, has called on the government to do more to establish full confidence in the biomass industry’s supply chains. He stated that ‘billions upon billions of government support has been provided to the biomass sector over the past two decades,’ but warned that taxpayers may not be getting value for their money.

The report has raised further questions about the future role of biomass plants fitted with carbon capture technology, known as bioenergy with carbon capture and storage (Beccs). Drax had previously announced plans to slow its investment in Beccs unless the government provided clarity over the returns it could expect from the upgrade.

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