Drax Left in Limbo As It Awaits UK Subsidy Decision on Biomass

By Eamon Akil Farhat
BNN Bloomberg – Investing
February 29, 2024
Category: Carbon, Climate & Bioenergy
Region: International

UK electricity generator Drax Group soared in trading after earnings beat analyst expectations, although questions remain around the outcome of a government consultation on continued biomass subsidies. The utility posted £1.2 billion in adjusted earnings… even as the high prices from Europe’s energy crisis eased. …Drax is seeking subsidies beyond 2027 to tide it over until its carbon capture project can start in 2030. The government consultation closes at the end of February with a decision expected in April. …A bridge subsidy “could provide multi-year certainty allowing Drax to secure long-term biomass supplies and continue to support energy security via flexible and reliable renewable biomass operations in advance of bioenergy with carbon capture and storage,” the company said. …Meanwhile, concerns over the carbon-neutral credentials of biomass were in focus again this week after a BBC report that said Drax sourced some of its fuel by cutting down primary forest.

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