Drax Power Station, a prominent UK energy producer responsible for generating approximately 6% of the nation's electricity through burning wood pellets, faces renewed scrutiny over sustainability practices. The station has benefited from substantial government and bill-payer subsidies, positioning wood-burning as a renewable energy source. However, a recent investigation reveals that Drax failed to report sourcing wood from primary forests in its 2020-21 sustainability data, resulting in a £25 million penalty last year. The energy regulator Ofgem has confirmed its commitment to acting decisively should further discrepancies arise.
Drax Power Station's operations rely heavily on wood pellets, with over 1.2 million tonnes sourced from Canada annually. A significant portion of this wood originates from primary forests in British Columbia's interior. These forests, untouched by modern industrial logging until the 1960s, have not matured sufficiently for plantation harvesting since recent logging activities began. Despite this, Drax was mandated to disclose its use of primary forest wood to Ofgem but failed to do so in the 2020-21 reporting period.
The company's subsidies are set to expire in 2027, yet an extension announcement is anticipated imminently. Substantial taxpayer and consumer funds have supported Drax, banking on the classification of wood-burning as renewable energy. However, the misreporting of sustainability data has cast doubts on the legitimacy of these subsidies.
Drax insists on its commitment to sustainable practices.
"Drax recognises the importance of sustainably sourced biomass, and we work to ensure our pellets are legally harvested and meet the strict sustainability requirements of the UK, US, and Canadian governments, as well as those of the EU." – Drax
Despite their assurances, Drax's continued sourcing of whole trees from primary forests felled by other companies remains contentious. The UK's current biomass sustainability criteria do not prohibit using whole trees from primary forests for wood pellets, raising questions about regulatory gaps.
A spokesperson from the Department for Energy Security and Net Zero emphasized the inadequacy of past biomass generator practices.
"The situation we inherited for large scale biomass generators was unacceptable." – A spokesperson for the Department for Energy Security and Net Zero
The department also confirmed that Ofgem mandated a further audit to prevent future misreporting.
"Ofgem required a further audit to be undertaken and they are working closely with Drax to ensure any misreporting does not happen again." – A spokesperson for the Department for Energy Security and Net Zero
Drax defends its previous reporting discrepancies as minor.
"Technical in nature" and "would not have impacted the levels of ROCs [subsidies] earned." – Drax
However, Ofgem remains vigilant.
"We thank the BBC for sharing this information which relates to the same issue that was identified in our investigation into Drax." – Ofgem spokesperson
The regulator has stated its readiness to investigate anew should additional evidence emerge.
"If any additional evidence comes to light following the audit, we will investigate again." – Ofgem spokesperson
Drax claims adherence to practices that minimize environmental impact.
"Avoid damage or disturbance to high carbon forests" which "can be defined as primary forest." – Drax
The company's decision to cease bidding for logging licenses and halt sourcing from certain sites marks an effort to align with sustainable practices. Nonetheless, its reliance on Canadian wood persists despite reductions.