Drax Power Station, a key player in the UK’s renewable energy sector, has once again come under scrutiny for failing to report its use of wood from primary forests, BBC News has found. The revelations come after the company was fined £25 million last year for misreporting sustainability data, following an investigation by energy regulator Ofgem.
The North Yorkshire-based power station, which produces around 6% of the UK’s electricity, has received billions of pounds in government subsidies, as wood-burning is classified as a renewable energy source. However, newly uncovered evidence suggests that Drax misreported its data for an additional year, a period that has yet to be reviewed by regulators.
Undeclared Use of Primary Forest Wood
As part of its subsidy agreements, Drax is required to declare whether it sources wood from natural, previously untouched forests. These primary forests are crucial for storing carbon and providing vital wildlife habitats.
Despite publicly committing to avoiding damage to high-carbon forests, Drax has continued to source whole trees from primary forests in British Columbia, Canada—a practice that contradicts its own sustainability criteria. Logging records reveal that while Drax no longer holds logging licenses in British Columbia, it still purchases wood from other companies that clear-cut these forests.
Data obtained by the BBC through environmental information requests shows that in the 2020-21 reporting year, Drax failed to declare that a significant portion of the 1.2 million tonnes of Canadian wood pellets it burned came from primary forests.
When asked why it had misreported its sustainability data, Drax did not provide a response. Instead, the company stated that it is “focused on implementing lessons learned” and emphasized that its sourcing meets UK, US, Canadian, and EU sustainability standards.
Regulatory Response and Government Subsidies
Ofgem previously stressed that accurate sustainability reporting is essential for monitoring the impact of biomass energy on carbon emissions and biodiversity. The regulator has now ordered Drax to conduct an independent audit of its global supply chain.
“If any additional evidence comes to light following the audit, we will investigate again,” an Ofgem spokesperson said.
Despite the findings, Ofgem has not yet committed to further action against Drax for the newly uncovered misreporting. Meanwhile, the UK government is expected to extend Drax’s renewable energy subsidies, which are currently set to expire in 2027.
A Growing Debate Over Biomass Sustainability
The government has indicated that it is considering amendments to the current biomass sustainability criteria, which do not currently prohibit the use of whole trees from primary forests for wood pellets. However, officials have not confirmed whether new regulations will restrict sourcing from these critical ecosystems.
A spokesperson for the Department for Energy Security and Net Zero acknowledged concerns over biomass sustainability and said Ofgem is working closely with Drax to prevent further misreporting.
“The situation we inherited for large-scale biomass generators was unacceptable,” the department stated.
As scrutiny over Drax’s environmental impact intensifies, the debate continues over whether wood-burning should remain a cornerstone of the UK’s renewable energy strategy—especially when primary forests are at stake.
