UK to Continue to Support Biomass Energy Even With Stronger Sustainability Rules

BNN Bloomberg is reporting (8-10-23) that the UK government has said it will continue to support biomass energy, though it failed to provide specific details on how it would subsidize the country’s biggest utility using the fuel.

On Thursday, the long-awaited UK biomass strategy was released. Graham Stuart, the Minister for Energy Security and Net Zero, said that the technology has an “extraordinary” future potential for transportation, heat, and electricity. Stuart also said that the government will also be launching a consultation to tighten up sustainability criteria for biomass.

According to BNN Bloomberg, while concerns remain about the fuel’s potential to cut emissions and whether growing crops for energy could potentially displace food supplies, the UK government has said it would continue to provide financial support to new biomass projects that meet its 2018 sustainability criteria. This will be through its contract-for-difference subsidy program that guarantees a minimum price for power produced.

Last year, biomass supplied 11% of UK power, with much of it coming from Drax Group Plc., which has converted its coal-fired units to run on wood chips. The utility said it welcomed the strategy paper. However, government subsidies for Drax’s unabated biomass generation expire in 2027. Due to the cost of biomass as a fuel to generate power, the utility is unlikely to be profitable without the kind of help that can compete with the generous investment incentives being offering in the US. Drax said it is in discussions with the UK government about “bridging options” to help finance out as far as 2030.