22nd Report - Government’s support for biomass

The government states that providing the KPMG report (requested in point c) is not its responsibility, as the reports belong to Drax and it is up to Drax to release them. The response does not address points 'a' or 'b' of the recommendation regarding cost estimation, effectiveness testing, or resource implications for a new oversight regime.

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.

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.

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.

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.

The government acknowledges DESNZ's overall responsibility for supporting biomass.

The government agrees with the (implied) recommendations, committing to strengthening its sustainability assurance approach, incorporating lessons into the new Drax contract, appointing an independent sustainability advisor by Autumn 2025, and considering publishing sustainability enforcement plans by December 2025.

The government agrees with the (implied) recommendations, committing to strengthening its sustainability assurance approach, incorporating lessons into the new Drax contract, appointing an independent sustainability advisor by Autumn 2025, and considering publishing sustainability enforcement plans by December 2025.

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.

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.

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.

The government has been actively assessing its approach to sustainability assurance as part of a commitment to continuous improvement and to learn from international best practice and evolving international regulatory frameworks.

The government states that this is not a matter for the government to consider, and it is for Drax to decide whether they wish to release the KPMG reports, adding that Ofgem has already published significant detail.

The government is working with LCCC and Ofgem to develop robust and transparent monitoring arrangements, assessing the cost and resource implications of new requirements, and ensuring Ofgem is appropriately resourced. They expect the independent sustainability advisor to play a role in ensuring the ongoing effectiveness of strengthened sustainability arrangements.

DESNZ officials continue to monitor the international and domestic biomass supply landscape, but state that international pellet supply will continue to be vital, as UK biomass pellet production at a comparable scale would not be possible.

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.

DESNZ officials continue to monitor the international and domestic biomass supply landscape, but state that international pellet supply will continue to be vital, as UK biomass pellet production at a comparable scale would not be possible.

The government explicitly disagrees with the Committee's (implied) recommendation regarding the Drax power station contract, explaining that the agreement prioritised securing electricity supply at the lowest cost and retaining future BECCS optionality, rather than committing to large-scale BECCS adoption which carries unacceptable legal and cost risks.

The government explicitly disagrees with the Committee's (implied) recommendation regarding the Drax power station contract, explaining that the agreement prioritised securing electricity supply at the lowest cost and retaining future BECCS optionality, rather than committing to large-scale BECCS adoption which carries unacceptable legal and cost risks.

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.

The government agrees with the recommendation and is considering options to publish the plans for sustainability enforcement under the new Drax contract by December 2025, also working closely with Ofgem and LCCC on sustainability assurance roles.

The government agrees with the recommendation and will work with LCCC and Ofgem by Autumn 2025 to develop robust, transparent monitoring arrangements for new sustainability criteria, ensuring Ofgem is appropriately resourced.

The government agrees that BECCS is important and states that a forthcoming report, compliant with a High Court Order and the Climate Change Act 2008, will address policies and proposals to meet carbon budgets. They have also commissioned an Independent Review of Greenhouse Gas Removals to consider how BECCS can assist in meeting net zero targets.

The government acknowledges the lack of a revised target date for BECCS and states that a forthcoming report, compliant with a High Court Order and the Climate Change Act 2008, will address policies and proposals to meet carbon budgets. They have also commissioned an Independent Review of Greenhouse Gas Removals to consider how BECCS can assist in meeting net zero targets.

The government notes smaller-scale biomass generators can continue to be supplied by a variety of domestically sourced feedstock, but these are not suitable for the technologies currently used by larger-scale generators.