The Drax power plant in Yorkshire claimed £999m in subsidies from the government in 2025 despite the controversial nature of its claims to be a low-carbon energy generator.
The figures, calculated by the Ember think tank, showed that Drax received £728m through the Renewables Obligation (RO), which covers three of the four generating units, and Contracts for Difference (CfD) payments for the remaining units, worth £271m.
The 2.6GW facility now uses biomass as its primary fuel following a lengthy conversion process from its roots as a coal-fired power plant. The wood pellets burned by the power plant have an equivalent carbon intensity to coal – which is considered to be the most carbon-intensive fossil fuel – but are burned at higher volumes due to their low energy density, meaning that burning wood emits more CO2 than coal or gas per kWh of electricity.
The two fuels are not directly equivalent; however, biomass can be considered a climate-friendly fuel due to its renewable nature and...