In the opinion of business and energy secretary Kwasi Kwarteng, the United Kingdom is too dependent on biomass from the US. As theguardian.com reports, the minister held a private meeting with MPs last week, during which he told them that importing pellets for the generation of electricity in power plants like those operated by the Drax Group “is unsustainable and makes no sense”. The energy group’s share price fell by 10% following this statement.
The burning of biomass to produce energy has received GBP 5.6 billion (€6.6 billion) in subsidies from the British government over the last decade. Biomass plays a crucial role in increasing the UK’s energy security and the government is set to publish a strategy paper for bioenergy soon. In an interview with the Financial Times, Kwarteng questioned the future of biomass in Great Britain and said: “I can well see a point where we just draw the line and say: Biomass isn’t working.”
The government launched a consultation on potential business models to finance a first biomass burning plant fitted with bioenergy with carbon capture and storage (BECCS). According to Will Gardiner, CEO of Drax, BECCS is “vital to energy security and net zero because it can produce reliable renewable power whilst also permanently removing CO2 from the atmosphere – no other technology does both.”
London-based, British energy group Drax operates 17 pellet mills in the United Kingdom and North America. In 2021, the group produced 3.1 million t of wood pellets and in the first six months of this year, output amounted to 2 million t already. Drax plans to raise its annual production capacity to 8 million t. 80% of the pellets used by the group in Great Britain are imported from North America. Since 2019, the joint-stock company received GBP 2.5 billion (€2.95 billion) in subsidies for its power plant which was previously powered by coal. These subsidies are set to expire in 2027. Drax is therefore seeking new subsidies for its bioenergy with carbon capture and storage (BECCS) project which it hopes will remove 8 million t of carbon dioxide a year from the atmosphere from 2030.
