Drax rejects MPs' claims that firm is 'marking its own homework' on biomass sustainability

However Drax insisted its biomass was sustainable and said it was assessed through an internationally recognised certification scheme, while Ofgem added that it takes compliance “extremely seriously”.

The firm’s power station in Selby, receives almost a billion pounds a year in direct Government subsidies, in addition to multimillion-pound carbon tax breaks.

It is the biggest in the UK and produces five per cent of the UK’s electricity. Money for the subsidies comes from taxpayers, because the electricity produced from burning wood pellets which is what happens at Drax is classified as renewable.

Biomass as a clean energy source has long been under dispute and the Government has faced calls to end financial support for companies such as Drax.

The PAC said it had heard concerns about allegations of biomass causing significant environmental harm, and questioned whether it can genuinely be considered a low-carbon fuel.

Last year, Drax agreed to pay £25m after a probe by energy industry regulator Ofgem found the company had failed to properly report data on the types of wood it uses for its biomass pellets.

While a BBC Panorama investigation found Drax has held logging licences in Canada and used wood, including whole trees, from primary and old-growth forests for its pellets, the company has maintained its biomass is sustainable and legally harvested.

The PAC said the current arrangements for assessing sustainability rely heavily on self-reporting and third-party schemes, and claimed neither the Government or regulator Ofgem know whether this is effective.

Committee chair Sir Geoffrey Clifton-Brown said: “Billions upon billions of government support has been provided to the biomass sector over the past two decades.

“Rather than taking it on faith that the woody biomass burnt for energy is a sustainably sourced low-carbon alternative fuel, it is long past time a true assay was made of what taxpayers are getting for their money.”

From 2031, Drax hopes to have Bioenergy with Carbon Capture and Storage (BECCS) installed linking to two of the four generating units at the Selby site.

The company says this would remove carbon from the atmosphere while producing secure renewable power, and is currently in negotiations with the Government around funding support.

However, the PAC raised questions about why BECCS had yet to be confirmed, and called on the Government to put in place a contingency plan.

Sir Geoffrey added: “Our report also raises further questions around what role will be played by BECCS, long-viewed as crucial for net zero but with no movement visible on the horizon to start to build it into the UK’s infrastructure.

“In light of the continuing concerns raised around biomass highlighted by our written evidence, gaining full confidence around the sector’s supply chains is work that must be carried out if government is to truly satisfy itself that biomass is not a white elephant.

“All are agreed that further monitoring of the sustainability of biomass will require government to devote more resources to the problem.”

A Drax spokesperson said: ““Drax’s biomass is certified as sustainable through the Sustainable Biomass Programme (SBP), an internationally recognised certification scheme.

“Our regulator, Ofgem, has tested and benchmarked the SBP against the Government’s sustainability requirements for woody biomass, alongside other programmes.”

While an Ofgem spokesperson added: “We take industry compliance with biomass regulations extremely seriously and we work closely with government to ensure existing policy on sustainability of biomass is implemented as robustly and effectively as possible.

“Any scheme participant receiving public subsidies must demonstrate they are fully compliant with the rules.

“Where they fall short in doing so, we won’t hesitate to investigate and use the powers at our disposal to take appropriate action.”