Drax Power Plant Receives Record £999 Million in Subsidies for Biomass Energy in 2025
Drax claimed record £999m in subsidies for burning trees in 2025, thinktank says
The Guardian
Image: The Guardian
Drax power plant in North Yorkshire, England, received nearly £1 billion in subsidies for biomass energy generation in 2025, raising concerns over sustainability practices. Despite claims of using low-value waste wood, allegations suggest that Drax may be burning ancient trees from ecologically valuable forests, prompting calls for subsidy halts pending investigation.
- 01Drax received £999 million in subsidies for biomass energy generation in 2025.
- 02The power plant generated about 4.5% of Great Britain's electricity from biomass.
- 03Concerns persist regarding the sustainability of wood pellets used, with allegations of burning ancient trees.
- 04The UK government has halved future subsidies for Drax under a new contract.
- 05Drax is reviewing its Canadian biomass operations and plans to stop sourcing from British Columbia.
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In 2025, Drax power plant in North Yorkshire, England, received a record £999 million in subsidies for generating approximately 4.5% of Great Britain's electricity from biomass. This subsidy amounts to £13 per household, as calculated by climate thinktank Ember. Drax's ability to claim these subsidies has been attributed to an increase in power generation and rising payouts from a legacy renewable support scheme. However, the company's practices have come under scrutiny, with allegations that it burns wood pellets sourced from ancient forests in Canada, despite claims of using only low-value waste wood. A cross-party group of MPs has urged the energy secretary to halt Drax's subsidies pending an investigation into its sustainability claims. The UK government has already reduced future subsidies for Drax, requiring it to switch to 100% sustainable biomass sources by 2031. Drax has also committed to ending its operations in British Columbia, Canada, before the new subsidy regime takes effect.
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The significant subsidies for biomass energy generation may affect local taxpayers and raise environmental concerns regarding deforestation and carbon emissions.
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