Government support for biomass

Public Accounts Committee Closed Inquiry
Opened: 4 Feb 2025 Closed: 16 Jun 2025 Parliament page
Over £20bn in support for businesses and households using biomass (such as plants or food waste) for fuel has been provided by Government since 2002. In combination with carbon capture, usage and storage , the Government is relying on the use of biomass to make a significant contribution to reaching … Read more
2 Recommendations
23 Conclusions
1 Report
1 Oral session
5 Letters
1 Event
Activity timeline 9 events
15 Dec
2025
Correspondence
15 Dec
2025
Correspondence
15 Dec
2025
Correspondence
10 Jul
2025
Report published
25 Apr
2025
Report published
27 Mar
2025
Correspondence
27 Mar
2025
Correspondence
3 Mar
2025
Oral evidence
3 Mar
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
Oral evidence sessions 1 session
3 Mar 2025
View on parliament.uk
Ashley Ibbett · Department for Business, Energy and Industrial Strategy Dr Sarah Redwood OBE · Department for Energy Security and Net Zero Jeremy Pocklington · Ministry of Defence Jonathan Brearley · Ofgem Jonathan Brearley · Department for Energy Security and Net Zero Kiera Schoenemann · Ofgem
Title HC No. Published Items Response
22nd Report - Government’s support for biomass HC 715 25 Apr 2025 25 Responded
Recommendations & Conclusions
7 results
Clear
4 Conclusion Accepted
22nd Report - Government’s support…
Map critical path for BECCS deployment and develop contingency plans for decarbonisation goals.
The deployment of BECCS has been repeatedly delayed, even though it remains a key part of the government’s plans to decarbonise the UK. The Climate Change Committee (CCC) and DESNZ both see BECCS as essential to the UK achieving its … Read more
Government Response
The government agrees, stating it will publish a report detailing its plan to meet carbon budgets and net zero targets. Additionally, an Independent Review of Greenhouse Gas Removals has been commissioned to assess how technologies like BECCS can assist the UK in achieving these goals.
HM Treasury
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5 Conclusion Accepted
22nd Report - Government’s support…
Develop approach to identify and mitigate risks to domestic and international biomass supply.
There are number of risks to the supply of biomass that need effective management. DESNZ’s Biomass Strategy identified a number of challenges for its use in the future which it needs to manage, including making sure that it has a … Read more
Government Response
The government agrees and states it continuously monitors the biomass supply landscape, including regulatory changes and market dynamics. It emphasizes ongoing reliance on international pellet supply, primarily from the US, as domestic production at a comparable scale is not possible.
HM Treasury
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1 Conclusion Accepted
22nd Report - Government’s support…
Committee took evidence from DESNZ and Ofgem on government’s support for biomass.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (the Department) and the Office of Gas and Electricity Markets (Ofgem) on the government’s support for biomass.1
Government Response
The government agrees and is reflecting on current evaluation and audit processes to incorporate lessons into future plans, including the new Drax contract. This work will be strengthened by the forthcoming appointment of an independent sustainability advisor.
HM Treasury
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9 Conclusion Accepted
22nd Report - Government’s support…
Concerns persist regarding the fitness for purpose of biomass sustainability certification schemes.
We are concerned that the certification schemes that are intended to prove that biomass used in the UK is sustainably sourced may not be fit for purpose.12 DESNZ told us that they and Ofgem have benchmarked these third–party certification schemes … Read more
Government Response
The government agrees to complete a comprehensive assessment of its approach to gaining assurance around the sustainability of biomass by Autumn 2025. They will reflect on evaluation and audit processes and incorporate lessons learned into plans for the new Drax contract and Common Framework consultation, and appoint an independent sustainability advisor.
HM Treasury
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10 Conclusion Accepted
22nd Report - Government’s support…
Ofgem found misreporting by Drax, but confirmed legitimate subsidy receipts under existing thresholds.
Ofgem explained that the level of oversight is dictated by the size of the generator.17 At present, the largest recipient of financial support for biomass is Drax, the largest biomass electricity generator by some distance.18 While Ofgem did find misreporting … Read more
Government Response
The government states that Ofgem's investigation into Drax, leading to a £25 million payment, proves the current assurance regime is working well, as breaches are investigated and actions taken.
HM Treasury
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11 Conclusion Accepted
22nd Report - Government’s support…
Concerning non-compliance with sustainability criteria found across numerous biomass power generators.
Ofgem told us that there are 104 biomass power generators with a generating capacity over 1 MW, and which therefore receive the same level of oversight as Drax.22 In the last year, Ofgem found that 17 of these 104 had … Read more
Government Response
The government believes the Ofgem investigation into Drax and the subsequent redress payment demonstrates that the current assurance regime is working well, and breaches are thoroughly investigated and action taken.
HM Treasury
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16 Recommendation Accepted
22nd Report - Government’s support…
Domestic biomass production risks conflicting with food security and land availability.
DESNZ noted that global biomass prices would strongly influence how significant a role biomass would play and in what sectors, given that there are several areas in which it can be used.45 Higher biomass prices could encourage a growth in … Read more
Government Response
The government agrees with the recommendation and will monitor the international and domestic biomass supply landscape, ensuring that the government is abreast of changes to regulatory arrangements, market dynamics, and other factors that drive the supply of and demand for pellets.
HM Treasury
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Government Response AI assessment · 19 of 2 classified
Accepted 7
Acknowledged 6
Deferred 4
Rejected 2
Total 2 recs + 23 conclusions
Correspondence 5 letters
15 Dec 2025 To committee Letter from the Permanent Secretary at the Department for Energy Security and Net Zero relating to Government support for biomass, 03 December 2025
Parliament page
15 Dec 2025 To committee Letter from the Chair to the Permanent Secretary at the Department for Energy Security and Net Zero relating to Regulation of the biomass industry, 30 October 2025
Parliament page
15 Dec 2025 To committee Letter from the Permanent Secretary at the Department for Energy Security and Net Zero relating to Regulation of the biomass industry, 03 December 2025
Parliament page
27 Mar 2025 To committee Letter from the Chief Sustainability Officer at Drax relating to providing help with the Committee’s recommendations to Government regarding Biomass, 17 March 2025
Parliament page
27 Mar 2025 To committee Letter from the Permanent Secretary of the Department for Energy Security and Net Zero relating to the oral evidence session held on 03 March 2025 on The Government’s Support for Biomass, including additional details on Drax Heads of Terms, 19 March 2025
Parliament page