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Drax Power: Finance

Asked by Sir Oliver DowdenConservativeDepartment for Energy Security and Net ZeroTabled Answered 17 February 2026UIN 111731

The question

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the (a) environmental and (b) ethical standards required for the continued provision of support to Drax.

Answered by Michael Shanks

In February 2025, DESNZ concluded a consultation on a “transitional support mechanism for large-scale biomass generators”. This included a comprehensive assessment of sustainability criteria for biomass used in the UK, as well as broader environmental and ethical considerations:

https://assets.publishing.service.gov.uk/media/67a9f462699d77bee014847c/transitional-support-mechanism-large-scale-biomass-generators-consultation-government-response.pdf

Following this consultation, the new Low-Carbon Dispatchable Contract for Difference (LCD CfD) with Drax, finalised in November 2025, has increased the proportion of biomass that must come from sustainable sources to 100%, tightened the supply chain emissions threshold to 36.6 mgCO2eq/MJ, and excluded material sourced from activities within primary forests and old growth forest areas from receiving subsidy support.

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