The UK Government is exploring different options to provide ongoing support for Drax Group’s biomass-fired power plant as it navigates the transition from current subsidies ending to new ones commencing in 2030.
Current subsidies for Drax’s biomass generation are set to expire in 2027.
Subsidy options include a “constrained” contract-for-difference model and profit-sharing with consumers, aimed at securing a guaranteed price for the produced power.
Drax has converted four units at its Yorkshire power station to biomass from coal.
Despite biomass being deemed renewable, it emits carbon – Drax plans to install carbon capture technology by 2030.
Retrofitting these units with carbon capture faced delays after rejection in the government’s initial support programme.
A Department for Energy Security and Net Zero spokesperson said: “The government is focused on protecting people’s bills and any potential support would be subject to a rigorous value for money assessment – ensuring that any tax and billpayer money is spent wisely.”
