Green campaigners slam £4billion Drax handout

Taxpayers could have to pay £4 billion to power station owner Drax under new clean energy financing plans, even as campaigners dispute its green credentials.

The FTSE 250 company, which previously operated Britain’s largest coal-fired power station, now produces electricity by burning wood pellets, known as biomass, and receives a controversial government subsidy that runs until 2027.

Drax is now lobbying for an extension that could result in households having to pay a total bill of £4.1 billion by the end of 2035 – according to an analysis shared by energy think tank Ember to The Mail on Sunday.

It estimates that taxpayers could pay at least £425 million annually to the company, which equates to £15.28 a year in household energy bills.

The government has given money to companies including Drax through its biomass strategy as Britain aims to switch from fossil fuels to renewable energy. Drax received £617 million in government support for its biomass units last year alone.

But campaigners have long questioned the claim that burning wood produces ‘renewable’ energy.

The government considers this practice to be green, despite the fact that the carbon dioxide absorbed by the trees is released back into the atmosphere during the burning process.

In addition, most of the pellets Drax burns at its flagship power station in Yorkshire are imported from forests in the US and Canada.

“We’ve already given Drax billions in subsidies, making its bills more expensive, while it probably hasn’t helped stop climate change,” said Phil MacDonald, managing director at Ember.

‘After the enormous increase in gas prices in recent years, the British simply cannot tolerate higher energy bills anymore. We should invest in clean energy that lowers energy bills, such as wind and solar energy.’

Matt Williams of the Natural Resources Defense Council said: ‘The government has already wasted billions of bill payers’ money by handing out low-carbon subsidies to British companies claiming to be green so they can burn North American forests in power stations.’

A spokesperson for Drax complained about ‘factual inaccuracies’ and ‘misplaced assumptions’ in the report, saying: ‘We operate under the same mechanisms as almost all other UK electricity producers.’

Ember stood by its analysis, highlighting the fact that it based its government grant forecasts on Drax’s annual reports.

A spokesperson for the Department for Energy Security and Net Zero said: ‘We do not recognize these theoretical and highly speculative figures.

‘Renewable biomass plays a key role in delivering safer, cleaner energy in Britain, generating 11 percent of the country’s total electricity supply last year, supporting our Net Zero target.’