https://www.theguardian.com/business/2026/feb/19/calls-to-halt-drax-subsidy-sustainability-doubts-wood-pellets

Exclusive: Cross-party group ‘deeply concerned’ power plant may have misled ministers and regulators over source of wood pellets

Ed Miliband is under pressure from MPs to suspend subsidies worth £2m a day paid to the owner of the Drax power plant in North Yorkshire after court documents cast doubt on the company’s sustainability claims.

A cross-party group of 14 MPs and peers have called on the energy minister to halt the subsidies for Britain’s biggest power plant while the financial watchdog investigates the company’s claims about how it sources the millions of tonnes of wood pellets burned to generate electricity.

In a letter, seen by the Guardian, the politicians said they were “deeply concerned” that Drax may have been given “substantial billpayer subsidy” while the company “may have knowingly and consistently concealed information” about the green credentials of its wood sources.

The FTSE 250 owner of the Drax power plant gets about £2m a day in renewable energy subsidies, paid by consumers, on the condition it generates electricity from biomass pellets made from waste or low-value wood from sustainable forests.

Drax, Britain’s single biggest source of carbon emissions, imports millions of tonnes of wood pellets from across the Atlantic every year and is projected to receive £11bn in subsidies by the end of 2027.

The letter was sent to Miliband after “explosive” employment tribunal documents revealed that senior executives at Drax had privately raised concerns about the accuracy of its public sustainability claims, after allegations that it was burning wood from some of Canada’s most environmentally important woodlands.

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Article continues at https://www.theguardian.com/business/2026/feb/19/calls-to-halt-drax-subsidy-sustainability-doubts-wood-pellets