The UK government said it will continue to support biomass energy, though it failed to provide specific details on how it would subsidize the country’s biggest utility using the fuel. Source: Bloomberg
In a long-awaited biomass strategy, Graham Stuart, UK minister for energy security and net zero, said the technology has an “extraordinary” future potential for transport, heat and electricity. The government will be also be launching a consultation to tighten up sustainability criteria for biomass, he said.
Last year, biomass supplied 11% of UK power, with much of it coming from Drax Group, which has converted its coal-fired units to run on wood chips. The utility, which said it welcomed the strategy paper.
While concerns remain about its potential to cut emissions and whether growing crops for energy displaces food supplies, the government said it would continue to provide financial support to new biomass projects that meet its 2018 sustainability criteria. This will be through its contract-for-difference subsidy program that guarantees a minimum price for power produced.
Government subsidies for Drax’s unabated biomass generation expire in 2027. Due to the cost of biomass as a fuel to generate power, the utility is unlikely to be profitable without the kind of help that can compete with the generous investment incentives being offered in the US. Drax said it’s in discussions with the UK government about “bridging options” to help finance out to as far as 2030.
Mark Sommerfeld, deputy director of policy at the Renewable Energy Association, said he was pleased the government was planning to continue to support biomass across all parts of the economy, as the industry had concerns it would start picking winners.
However, he urged the government to speed up its work on developing financial support for bioenergy carbon capture and storage, including when they would allocate that money.
“We welcome the UK Government’s clear support for sustainably sourced biomass and the critical role that BECCS can play in achieving the country’s climate goals,” Will Gardiner, Drax CEO said.
“The inclusion of BECCS at the top of a priority use framework is a clear signal that the UK wants to be a leader in carbon removals and Drax is ready to deliver on this ambition. We are engaged in formal discussions with the UK Government about the project and, providing these are successful, we plan to invest billions in delivering BECCS at Drax Power Station in North Yorkshire, simultaneously providing reliable, renewable power and carbon removals.
“We look forward to working alongside the Government to ensure biomass is best used to contribute to net zero across the economy, through further progression of plans for BECCS and ensuring an evidence-driven, best practice approach to sustainability.”
