Drax Received Record £999m in Subsidies for Biomass Energy in 2025, Report Says
Climate thinktank Ember reports that Drax, the owner of a major power plant in North Yorkshire, received a record £999 million in renewable energy subsidies in 2025 for burning wood pellets. This amount represents approximately 4.5% of Great Britain's electricity generation, costing each household an estimated £13 annually. Since 2012, Drax has accumulated roughly £8.7 billion in subsidies, despite ongoing controversy regarding the sustainability of its biomass sourcing. Critics and forestry experts allege the company burns old-growth trees from Canadian forests, contradicting claims that it uses only low-value waste wood. Internal court documents revealed former staff concerns about misleading public statements on sustainability, leading to a settled tribunal claim. While regulator Ofgem found no deliberate misreporting, it cited poor data governance, resulting in a £25 million fine. In response to political pressure, the UK government has halved future subsidies under a new contract running until 2031, mandating 100% sustainable sourcing and restricting generation to peak demand periods.
Wire timeline
Drax Received Record £999m in Subsidies for Biomass Energy in 2025, Report Says
Climate thinktank Ember reports that Drax, the owner of a major power plant in North Yorkshire, received a record £999 million in renewable energy subsidies in 2025 for burning wood pellets. This amount represents approximately 4.5% of Great Britain's electricity generation, costing each household an estimated £13 annually. Since 2012, Drax has accumulated roughly £8.7 billion in subsidies, despite ongoing controversy regarding the sustainability of its biomass sourcing. Critics and forestry experts allege the company burns old-growth trees from Canadian forests, contradicting claims that it uses only low-value waste wood. Internal court documents revealed former staff concerns about misleading public statements on sustainability, leading to a settled tribunal claim. While regulator Ofgem found no deliberate misreporting, it cited poor data governance, resulting in a £25 million fine. In response to political pressure, the UK government has halved future subsidies under a new contract running until 2031, mandating 100% sustainable sourcing and restricting generation to peak demand periods.
The Guardian