Drax Power: Finance

(asked on 9th February 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the (a) environmental and (b) ethical standards required for the continued provision of support to Drax.


Answered by
Michael Shanks Portrait
Michael Shanks
Minister of State (Department for Energy Security and Net Zero)
This question was answered on 17th February 2026

In February 2025, DESNZ concluded a consultation on a “transitional support mechanism for large-scale biomass generators”. This included a comprehensive assessment of sustainability criteria for biomass used in the UK, as well as broader environmental and ethical considerations:

https://assets.publishing.service.gov.uk/media/67a9f462699d77bee014847c/transitional-support-mechanism-large-scale-biomass-generators-consultation-government-response.pdf

Following this consultation, the new Low-Carbon Dispatchable Contract for Difference (LCD CfD) with Drax, finalised in November 2025, has increased the proportion of biomass that must come from sustainable sources to 100%, tightened the supply chain emissions threshold to 36.6 mgCO2eq/MJ, and excluded material sourced from activities within primary forests and old growth forest areas from receiving subsidy support.

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