The UK’s energy regulator is probing power station operator Drax as scepticism grows over its green claims.
Ofgem is investigating whether the firm which generates electricity by burning wood pellets at its plant in Yorkshire, complies with sustainability rules.
In October, the watchdog told the Low Carbon Contracts Company, a Government-owned body that administers energy agreements, that Drax had provided documentation to show the Canadian woody biomass it used in 2021 and 2022 was certified under the sustainable biomass program, a scheme that certifies if wood pellets used in industrial energy production are sourced sustainably and legally.
Biomass fuel: Ofgem is investigating whether Drax, which generates electricity by burning wood pellets at its plant in Yorkshire (pictured), complies with sustainability rules
At least 70pc of a generator’s woody biomass must be classified as sustainable under UK rules. But Ofgem has since hired US consultant Black & Veatch to do an additional audit to ‘protect ourselves from potential external scrutiny’, according to the Financial Times.
Drax has continually said the wood pellets are sustainable. But green groups say biomass power generation is not carbon-neutral and pellet production contributes to deforestation.
Drax has been criticised by green groups for receiving around £1.7million a day in renewable energy subsidies from the Government.
The probe comes as Drax plans a £150million share buyback after scooping millions from a rise in prices. It predicts earnings of between £1.1billion-£1.2billion for 2023.
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