UK biomass phase-out is now in sight

The UK government has announced a new subsidy package for Drax Power Station for 2027-2031 that is expected to reduce its electricity generation by 55% and lower its annual emissions to approximately 5.8 MtCO2e. While the strike price for the new Contract for Difference (CfD) mechanism increases to £113/MWh, the overall subsidy is estimated to fall to around £1.2 million per day. The report highlights that Drax remains the UK's largest emitting power station and relies heavily on imported wood pellets, primarily from North America. It argues that delivering 'Clean Power 2030' through wind, solar, and energy storage will further reduce the need for biomass and mitigate the risks associated with delayed and expensive Bioenergy with Carbon Capture and Storage (BECCS) projects.

• The new subsidy package for Drax Power Station from 2027 to 2031 is projected to reduce its electricity generation by 55%, meaning it will provide only 1.8% of the UK's electricity supply in 2030.
• Annual emissions from Drax are expected to drop to approximately 5.8 MtCO2e under the new package, down from an average of 12.57 MtCO2e between 2021 and 2024, though it will still be the UK's largest emitting power station.
• The estimated value of the new subsidy is approximately £1.2 million per day, a reduction from the current average of £2 million per day.
• The 2027-2031 CfD mechanism introduces a higher strike price of £113/MWh (up from £100/MWh in 2012 prices) but limits the subsidised generation volume to 27% of total potential generation.
• To prevent the curtailment of generation during price spikes, the new subsidies include 'collared' capacity factors: a minimum of 22% and a maximum of 27% on average, with specific seasonal limits (11%-16% in summer and 33%-38% in winter).
• A windfall levy mechanism will be applied to excess profits, with clawback rates of 30% for earnings above £160 million and 60% for earnings above £200 million.
• Bioenergy with Carbon Capture and Storage (BECCS) at Drax has faced repeated delays, moving from a 2027 start date to at least the early 2030s, and is considered one of the most expensive carbon abatement technologies.
• The UK's reliance on imported wood pellets for biomass—over 99% of which were imported in 2024, mostly from North America—poses an energy security risk, as evidenced by a 34% price jump during the 2022/23 energy crisis.

APA

Mayo, F. (2025). UK biomass phase-out is now in sight. Ember. https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf

Chicago

Mayo, Frankie. UK biomass phase-out is now in sight. Ember, 2025. https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf.

Wikipedia

{{cite report |last1=Mayo |first1=Frankie |title=UK biomass phase-out is now in sight |publisher=Ember |date=16 April 2025 |url=https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mayo2025biomass, author = {Mayo, Frankie}, title = {{UK biomass phase-out is now in sight}}, institution = {Ember}, year = {2025}, month = apr, url = {https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }