UK Halves Drax Subsidies, Requires 100% Sustainable Wood

The UK government has announced a new agreement with Drax power station that will halve subsidies from 2027 to 2031, aiming to save consumers approximately £170 million annually. Under this deal, Drax is required to transition to using 100% sustainable woody biomass, a significant increase from the previous 70% threshold. The government emphasizes that Drax will only generate power when necessary, helping to balance the electricity grid and reduce reliance on gas imports. Michael Shanks, the energy minister, stated that the previous subsidy structure allowed Drax to make excessive profits, prompting the need for reform. Additionally, Drax plans to explore bioenergy with carbon capture and storage (BECCS) as part of its strategy for decarbonization. This initiative aligns with Britain's broader goal of achieving a cleaner energy sector by 2030.