Energy
UK Extends Drax Biomass Subsidies But Seeks to Curb Profits
- New subsidies for Drax will keep the plant on past 2027
- Deal will limit Drax’s production, raise sustainability rules
An employee looks at a train containing pellets used to produce biomass fuel moves through Drax Group Plc's power station.
Photographer: Simon Dawson/Bloomberg
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The UK announced controversial new subsidies for a biomass-fired power plant, an important part of the country’s energy supply that’s garnered criticism due to concerns about sustainability.
Despite issues around the sustainability of biomass and what it called Drax Group Plc’s “unacceptably large profits” in recent years, the government had little option but to back further subsidies to keep the UK’s biggest power plant in operation in the coming years.