Recommendations & Conclusions
6 items
6
Conclusion
22nd Report - Government’s support for …
Acknowledged
The Department for Energy Security and Net Zero (DESNZ) has overall responsibility for government’s approach to supporting biomass. In August 2023, DESNZ published its Biomass Strategy setting out the significant role it considers biomass can play in achieving net zero by 2050.6 The Office of Gas and Electricity Markets (Ofgem) …
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The Department for Energy Security and Net Zero (DESNZ) has overall responsibility for government’s approach to supporting biomass. In August 2023, DESNZ published its Biomass Strategy setting out the significant role it considers biomass can play in achieving net zero by 2050.6 The Office of Gas and Electricity Markets (Ofgem) administers the government schemes that provide the majority of financial support for biomass in the heat and power sectors.7
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Government response AI summary
The government acknowledges DESNZ's overall responsibility for supporting biomass.
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HM Treasury
12
Conclusion
22nd Report - Government’s support for …
Acknowledged
In its Biomass Strategy, published in August 2023, DESNZ committed to develop and consult on a common sustainability framework which could be applied to all new future biomass schemes across different sectors of the economy. This consultation has yet to be launched, although DESNZ assured us that it would happen …
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In its Biomass Strategy, published in August 2023, DESNZ committed to develop and consult on a common sustainability framework which could be applied to all new future biomass schemes across different sectors of the economy. This consultation has yet to be launched, although DESNZ assured us that it would happen at some point in 2025.25 The strategy also committed DESNZ to consider whether it should strengthen the land criteria in its support schemes so that 100% of woody biomass would have to be sustainably sourced, rather than the 70% stipulated by the existing government support schemes.26 DESNZ and Ofgem both agree that if the threshold for sustainable biomass moved from 70% to 100%, then the assurance regime would also need to be tighter.27 Any changes will have resource implications for Ofgem. It assured that it could gear up with the necessary skills, “subject [to support from] DESNZ and Treasury “.28 The NAO’s experience of auditing other areas of government highlights how gaining assurance over more stringent rules requires a commitment of more resources to monitoring and compliance.29 19 Q 13 20 Q 13 21 Q 14 22 Qq 18–19 23 Q 18 24 Qq 18–19 25 Q 8 26 C&AG’s Report, para 11 27 Qq 14, 20 28 Q 15 29 C&AG’s Report, para 11 11
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Government response AI summary
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.
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HM Treasury
14
Conclusion
22nd Report - Government’s support for …
Acknowledged
In February 2025, the government announced it had agreed heads of terms for a deal to support Drax that will run from 2027 to 2031. As part of this deal, DESNZ has required Drax to source 100% of its fuel from sustainable sources, rather than the current 70%. DESNZ intends …
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In February 2025, the government announced it had agreed heads of terms for a deal to support Drax that will run from 2027 to 2031. As part of this deal, DESNZ has required Drax to source 100% of its fuel from sustainable sources, rather than the current 70%. DESNZ intends to appoint an independent sustainability adviser to support Ofgem and the Low Carbon Contracts Company to ensure that the assurance process is robust and keeps pace with the science.36 DESNZ recognised that if a target of 100% is set, a “tighter” assurance regime will be required which would require “quite extensive changes to the way we do things now”.37 DESNZ is working on exactly what these arrangements might be, and assured us that “they will be robust and we will include disincentives and penalties if sustainability requirements are not met.” 38 30 Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 31 Q 80 32 Ofgem statement Drax investigation and renewables obligation subsidies (12 March 2025) 33 Q 80 34 Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 35 Q 5; Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 36 Statement by the Secretary of State for Energy Security and Net Zero, UIN HCWS424, 10 February 2025 37 Q 14, 28 38 Q 30 12 Securing the supply of sustainable biomass
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Government response AI summary
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 …
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HM Treasury
15
Conclusion
22nd Report - Government’s support for …
Acknowledged
One of the key themes of the government’s Biomass Strategy concerns the future availability of biomass.39 In 2021, the UK imported 9.1 million tonnes of wood pellets for use in energy production. Around 60% came from the US, 18% from the EU and 16% from Canada.40 DESNZ describes itself as …
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One of the key themes of the government’s Biomass Strategy concerns the future availability of biomass.39 In 2021, the UK imported 9.1 million tonnes of wood pellets for use in energy production. Around 60% came from the US, 18% from the EU and 16% from Canada.40 DESNZ describes itself as agnostic as to whether biomass is sourced domestically or from overseas.41 The Climate Change Committee’s (CCC’s) most recent advice for Carbon Budget 7 highlights that supply of sustainable biomass is likely to be limited both in the UK and globally.42 We also received a written submission noting that relying on imported wood reduces the UK’s energy security.43 The CCC anticipates a declining role for biomass imports, with all the UK’s biomass demand being met from domestic sources by 2050.44
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Government response AI summary
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.
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HM Treasury
17
Conclusion
22nd Report - Government’s support for …
Acknowledged
Importing biomass involves long supply chains, which make it difficult to be sure that it is produced from genuinely sustainable sources.50 We are also concerned that recent international developments may undermine the system of carbon accounting that underpins the current supply of 39 C&AG’s Report, para 3.2 40 C&AG’S Report, …
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Importing biomass involves long supply chains, which make it difficult to be sure that it is produced from genuinely sustainable sources.50 We are also concerned that recent international developments may undermine the system of carbon accounting that underpins the current supply of 39 C&AG’s Report, para 3.2 40 C&AG’S Report, para 1.4 41 C&AG’S Report, para 3.3 42 Climate Change Committee, The Seventh Carbon Budget, February 2025, Section 7.7 43 Bio0012 44 Climate Change Committee, The Seventh Carbon Budget, February 2025, page 272 45 Q 49 46 Q 57 47 Q 57 48 C&AG’s Report, para 3.4 49 Bio0003, Bio0005, Bio0008 50 C&AG’s Report, para 9 13 sustainable biomass.51 Under current carbon accounting rules, emissions from the burning of biomass are accounted for by the country from which the fuel was sourced, an approach we were very critical of in our report on the government’s carbon capture usage and storage programme. The bulk of wood pellets burnt in biomass power generation in the UK come from the US, which has removed itself from the Paris Agreement.52 In written evidence received after our evidence session Drax set out that the US remains party to the United Nations Framework Convention Climate Change which requires that countries submit national greenhouse Gas Inventories in line with international standards.53 51 Q 65 52 Qq 62, 63 53 Letter from Drax, 17 March 2025 14 2 Future interventions Transitional support for Drax, 2027–2031
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Government response AI summary
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.
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HM Treasury
25
Conclusion
22nd Report - Government’s support for …
Acknowledged
While much of the debate around biomass has focused on Drax, we received several written submissions outlining the important role played by smaller biomass generators in the UK. There are at present 54 regional biomass power stations that are primarily fuelled by waste wood from household waste recycling plants. These …
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While much of the debate around biomass has focused on Drax, we received several written submissions outlining the important role played by smaller biomass generators in the UK. There are at present 54 regional biomass power stations that are primarily fuelled by waste wood from household waste recycling plants. These provide enough electricity to power 1.5 million homes.71 The government support for these power stations will begin to phase out from 2027 and it is not clear what support government will make available for them to convert to BECCS.72 Any conversion to BECCS would also require the government to set out clear plans for enabling carbon capture in ‘dispersed sites’, which are sources of carbon emissions that cannot access pipelines to transport the carbon dioxide. Only four of the 54 power stations are within 10 miles of a carbon capture cluster and are therefore likely to utilise a pipeline.73 66 National Audit Office, Carbon capture, usage and storage, Session 2024–25, HC 120, July 2024, para 1.4 67 Climate Change Committee, The Seventh Carbon Budget, February 2025, p 272 and fig 7.12.1 68 Q 67 69 Committee of Public Accounts, Carbon Capture, Usage and Storage, Eighth Report of Session 2024–25, HC 351, February 2025, para 22 70 Q 67 71 Bio0017 72 Q 58 73 Bio0017 17
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Government response AI summary
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.
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HM Treasury