Britain’s biggest power plant will continue to earn more than £1m a day from burning wood pellets under a new government subsidy contract designed to halve its financial support, according to analysts. The Drax power plant in North Yorkshire is in line to earn £458.6m a year between 2027 and 2031 after the government agreed to extend its subsidies beyond 2026, according to analysts at Ember, a climate thinktank. The earnings are well below the £869m in subsidies handed to the Drax power plant last year for generating about 5% of the UK’s electricity from burning biomass after the government promised to curb the use of biomass in Britain’s power system. Under the contract, Drax will be paid to run just over a quarter of the time, down sharply from almost two-thirds of time currently. But the price it will earn for each unit of electricity generated will rise.