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
2 results
Clear
3 Conclusion Rejected
22nd Report - Government’s support…
Include clauses in Drax's transitional support agreement to prompt BECCS transition.
We are not convinced the transitional support agreement between DESNZ and Drax provides good value for money for consumers. Government announced in February 2025 that it had agreed heads of terms for a deal to support Drax that will run … Read more
Government Response
The government disagrees with the recommendation, stating the proposed Drax contract prioritized secure, low-cost electricity supply over BECCS transition. It argues that including BECCS contractual requirements would expose the government to unacceptable legal and cost risks before a full assessment is finalized.
HM Treasury
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20 Conclusion Rejected
22nd Report - Government’s support…
Bilateral Drax agreement raises value-for-money concerns due to high subsidy rates.
Despite the new terms of the agreement, there are risks that the support will not offer consumers value for money. The agreement was reached through bilateral negotiations with Drax and included no element of competition.56 While the government claims that … Read more
Government Response
The government disagrees, stating that the proposed contract with Drax was intended to secure electricity supply at the lowest cost without the cost of procuring this via the Capacity Market auction, and the CfD framework cannot bind generators to investment decisions beyond the 2027-31 contract term.
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