Drax power plant could lose subsidies over compliance

Energy subsidies to the UK's largest renewable power station could be withdrawn if sustainability rules have not been followed, a minister has said.

The House of Lords heard concerns over the environmental credentials of the Drax-owned site, near Selby, which burns biomass, such as wood pellets.

It heard Ofgem was investigating whether Drax had been complying with sustainability requirements.

Drax said it had strict governance in place to oversee compliance.

The industry claims the wood burned by Drax is sustainably sourced from forestry waste, but critics have raised doubts over the veracity of this.

The House of Lords heard that some £11bn in government subsidies has been given to Drax for its renewable schemes.

During the debate, Labour peer Baroness Jones called for independent scientists to be sent to Canada to verify the sustainability of wood used to make biomass pellets.

Addressing Lord Callanan, the Minister for Energy Efficiency and Green Finance, she said: "Is the minister concerned that Drax's claim to be using sustainably-sourced wood from Canadian forests currently lacks any detailed full-cycle carbon accounting and audit trail that we would have the right to expect for that level of subsidy?"

Independent crossbencher Baroness Boycott referenced information from Canadian environmentalists who she said had reported "the ancient forest being destroyed for those wood pellets".

She added: "Why on earth do you still persist in saying that we are jumping to conclusions, when you're burying your head in the sand?"

In response, Lord Callanan said Ofgem was investigating matters and said: "If it is proved that they are not in compliance, then of course some of the value of the certificates they have received will be withdrawn."

He added: "Forgive me if I don't necessarily take as absolute facts the statements by some of the Canadian environmentalists.

"Ofgem are investigating whether the biomass is sustainable or not. Let's wait for the outcome of that investigation."

Drax said: "We are confident in our business and operations and committed to ensuring the biomass we source delivers positive outcomes for the climate, for nature and for the communities in which we operate."

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