{"id":88545,"date":"2025-02-13T03:20:39","date_gmt":"2025-02-13T03:20:39","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/uk-cuts-subsidies-for-biomass-power-producer-drax\/"},"modified":"2025-09-19T09:03:38","modified_gmt":"2025-09-19T09:03:38","slug":"uk-cuts-subsidies-for-biomass-power-producer-drax","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/uk-cuts-subsidies-for-biomass-power-producer-drax\/","title":{"rendered":"UK cuts subsidies for biomass power producer Drax"},"content":{"rendered":"

<\/span>The UK government has reached a deal with Drax Group, the country's largest renewable power generator, to significantly reduce the energy producer's subsidies from 2027 to 2031. The new agreement will see the subsidies for Drax cut by half, while also pushing the company to use more sustainable sources of woody biomass.<\/p>\n

Drax, which has converted four former coal-fired power plants to biomass, currently provides around 6% of the UK's electricity. The government\u2019s decision to scale back the subsidies follows a consultation that emphasized the need to ensure sustainability within the biomass sector. As part of the agreement, Drax must increase the share of its biomass sourced from sustainable origins to 100%, up from the previous 70%. Furthermore, materials sourced from primary or old-growth forests will no longer be eligible for subsidies, and Drax will face penalties if it fails to meet these new standards.<\/p>\n

Green groups have long criticized biomass electricity production, particularly Drax's use of wood pellets, for its potential role in deforestation. While the company maintains that it only uses wood residuals or byproducts from trees used in lumber production, critics remain concerned about the broader environmental impact. Drax, however, has responded to these concerns by emphasizing that sustainable demand for wood from managed forests can contribute to increased forest growth.<\/p>\n

Energy Minister Michael Shanks acknowledged the importance of biomass in the UK's energy mix but also recognized the need to address concerns over the sustainability of the industry. \u201cWe cannot allow Drax to operate in the way it has done before or with the level of subsidy it received in the past,\u201d Shanks stated. The UK government believes that the new deal will result in significant savings for consumers, amounting to \u00a3170 million ($211 million) annually compared to the costs of procuring natural gas to ensure reliable power supplies.<\/p>\n

Despite the reduction in subsidies, Drax expressed support for the changes. The company stated that it already meets the new sustainability criteria and will continue to collaborate with the government to ensure compliance with future reporting requirements. Following the announcement, Drax's shares rose by 3% in morning trading.<\/p>\n

Once the largest coal-powered generator in Britain, Drax now relies on biomass for baseload power generation. Under the new agreement, the company will operate at a maximum load factor of 27%, a reduction from current levels, ensuring it provides low-carbon power only when necessary. This move marks a significant step in the UK's ongoing efforts to balance renewable energy production with environmental sustainability.<\/p>","protected":false},"excerpt":{"rendered":"

The UK government has reached a deal with Drax Group, the country’s largest renewable power generator, to significantly reduce the energy producer’s subsidies from 2027 to 2031. The new agreement will see the subsidies for Drax cut by half, while … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nUK cuts subsidies for biomass power producer Drax - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/uk-cuts-subsidies-for-biomass-power-producer-drax\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK cuts subsidies for biomass power producer Drax - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The UK government has reached a deal with Drax Group, the country's largest renewable power generator, to significantly reduce the energy producer's subsidies from 2027 to 2031. 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