Source · Select Committees · Business and Trade Committee

Recommendation 27

27 Deferred Paragraph: 135

End taxpayer support for unabated bioenergy plants by 2027; restrict future subsidies to local waste biomass.

Conclusion
We believe that there should be no extension beyond 2027 for taxpayer support for unabated bioenergy plants, and that the aim should be to phase out such plants in favour of more sustainable alternatives as soon as possible. This could include bioenergy with carbon capture and storage but only in a scenario where viable and functioning carbon capture and storage is in use. Further subsidy should not be given to unabated biomass. Any future subsidies should only be provided to companies which can evidence the use of local, waste biomass and not companies that rely on imported biomass.
Government response summary AI-generated
The government states that its energy National Policy Statements (NPSs) are undergoing a second round of consultation, after which responses will be considered, finalised, and presented to Parliament by the end of the year, deflecting the specific recommendations on bioenergy subsidies to this broader process.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference: 135
Government Response Deferred
HM Government · verbatim extract Deferred
57. The Government has committed to developing a business model for power BECCS, which could support the conversion of eligible biomass power stations to BECCS plants, subject to value for money and access to carbon transport and storage infrastructure. The Government is working closely with bioenergy generators planning a transition to power BECCS to help facilitate their conversion. The Government is supportive of the role that power BECCS could play in reducing carbon emissions across the economy through generation of negative emissions, as well as providing low carbon power contributing to security of supply, which is a priority for this Government. 58. The Government has no plans to remove support prior to 2027 for biomass generating stations that are already supported under the Renewables Obligation (RO) and the Contracts for Difference (CfD). Such generators undertook their investments in establishing their stations under these schemes and have a statutory right to their existing support, as set out in the schemes’ implementing legislation. In the Biomass Strategy Policy Statement, the Government stated its intention for future large-scale biomass- based electricity generation to not be supported without the addition of CCS. Any small or medium-scale new unabated biomass power plants (if awarded a Contract for Difference) must meet updated GHG emission criteria for their supply chains, which could potentially incentivise the use of locally sourced wastes.
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