Source · Select Committees · Public Accounts Committee
Recommendation 22
22
New Drax agreement offers limited impact on emissions and lacks BECCS investment incentives.
Conclusion
There are other factors which cast doubt on whether the government has reached a good deal. The new support agreement with Drax reduces the level of allowed supply chain emissions for the fuel it burns, from 55.6 grams of CO2 per megajoule to 36.6 grams.60 While DESNZ said that this is in line with international best practice, historically Drax has achieved supply chain emissions below this new level so it is not clear if this change will have any effect.61 We also note that the agreement does not appear to include any incentives or requirements for Drax to continue investment in BECCS.62 This is particularly concerning given recent news reports that Drax is ceasing investment in a company that is intended to speed up the development of carbon capture and storage.63 ‘DESNZ told us it made the agreement with Drax principally to ensure security of supply, following the advice of its national energy system operator.64 The future of BECCS in the UK