New subsidies deal for Drax wood-burning power station

The government has agreed a new subsidy arrangement with the controversial wood-burning Drax power station in north Yorkshire.

The power station, a converted coal plant, generates about 5% of the UK’s electricity and has received billions of pounds in subsidies because wood-burning is classed as a source of renewable energy.

But though there are plans to eventually capture the carbon emitted from Drax, its emissions are currently unabated, making the power station the UK’s largest single source of the climate warming gas CO2.

The government said the new arrangement, which goes through to March 2031, would see the power station be used less and projected it would cost half the current amount.