On 10 February, the Government announced transitional support arrangements for large-scale biomass generators from 2027, following a consultation last year. As well as responding to the consultation, the Government has also agreed a new Heads of Terms for a low carbon dispatchable Contracts for Difference (CfD) with Drax.

The Government concluded that the deployment of power BECCS is relatively cost-effective and low risk and is expected to deliver a steady increase of engineered removals that will support the UK’s achievement of Carbon Budget 6 – 2033 to 2037. The support offered by government will be for lower generating volumes than previously provided and comes with the further strengthening of existing sustainability criteria. This includes increasing the proportion of woody biomass that must come from sustainable sources from 70% to 100% as well as the appointment of an independent sustainability adviser who will work with DSENZ, LCCC and Ofgem to ensure monitoring and enforcement measure keep pace with the science.

Much of the Government response aligns with calls made by the REA in our submission to the consultation last year, although we do remain disappointed that the eligibility criteria remains unchanged, meaning this support only extends to large-scale biomass generators, and not the 60+ sub-100MW stations who play a critical role in providing consistent, baseload energy and have the potential to transition to Bioenergy Carbon Capture and Storage (BECCS) in future.

REA response to transitional support arrangements for large-scale biomass generators:

Samantha Smith, Head of Heat and Biomass UK at the REA (Renewable Energy Association) said: “Today’s decision to agree a new support mechanism for Drax and other eligible large-scale biomass generators from 2027 is the right one. The role of sustainable biomass is recognised within all credible scenarios for getting to net zero, whether produced by the Climate Change Committee, the International Energy Agency, or the UN IPCC. It’s encouraging to see the Government recognise the important role that this technology plays in delivering a secure, value for money power system.  

 Sustainability must always be at the heart of using any bioresources. That’s why it’s good to see some of the existing standards further strengthened, and an independent sustainability adviser appointed. This will help to build confidence in the sector and ensure best practice is followed across biomass supply chains.

 Today’s announcement ensures large-scale generators can plan for the future and help to deliver carbon removals via BECCS, but there are more than 60 generators, who collectively provide around 1100MW of generating capacity, outside the scope of support. Many of these sites are suitable for retrofit of carbon capture technology with non-pipeline transport. However, some guarantee of support is needed for those not located in a carbon capture cluster, and with the Renewables Obligation starting to come to an end in 2027, time is of the essence.”