Government ‘cannot currently’ tell if £22bn subsidy for biomass plants is genuinely green – watchdog
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The government cannot sufficiently judge the sustainability of biomass generators, according to the National Audit Office (NAO), calling into question a £22bn subsidy programme.
In the organisation’s ‘Support for Biomass’ report, released today, it said that Westminster cannot currently demonstrate that it is making sure biomass generators, such as Drax’s site in North Yorkshire, are within net zero requirements.
The site, the largest power station in the UK, has been identified by the government as a key part of its strategy to reduce emissions and reach net zero by 2050.
It is technically classified as zero carbon, despite emitting the most CO2 of any plant in the UK, because it imports trees from overseas.
The NAO is recommending that the government publish the environmental impact of continuing subsidies for unabated biomass after 2027.
Some 36 per cent of the £22b-worth of subsidies – mostly through consumer bills – has gone to Drax, the NAO said.
Gareth Davies, Head of the National Audit Office said:
“If biomass is going to play a key role in the transition to net zero, the government needs to be confident that the industry is meeting high sustainability standards.
“However, government has been unable to demonstrate its current assurances are adequate to provide confidence in this regard.
“Government must review the assurance arrangements for these schemes, including ensuring that it has provided adequate resources to give it assurance over the billions of pounds involved.”
The report follows an ongoing run of audits on biomass in the court of public opinion in recent months alongside several major sector announcements.
Drax’s investors were spooked when the NAO audit was first announced back in September.
Since then, however, the firm has enjoyed several government boons, including securing the first round of sign-offs for a new carbon capture and storage plant and the opportunity for billions of pounds in extended subsidies through to 2030.
A Drax spokesperson said the company welcomed the report and “fully supports” a review process.
“It is essential that sustainability reporting and criteria are robust and fit for purpose,” they continued.
A spokesperson from the Department of Energy Security and Net Zero added:
“We welcome the NAO’s report, which found no evidence of firms not complying with our stringent sustainability criteria, which are in line with internationally-recognised standards.
“The Climate Change Committee has acknowledged that achieving net zero is dependent on solutions like Bioenergy with carbon capture and storage, which will help offset emissions from other industries.”