Drax's reliance on wood pellets has raised questions about its long-term viability as a carbon-neutral energy source. Critics argue that the company's business model is heavily dependent on government subsidies, which will be cut nearly in half after 2027, forcing it to scale back operations and pivot towards other investments.
The UK-based power company converted Europe's largest coal plant into a biomass facility, relying on wood pellets imported from southern US states. However, recent lifecycle analyses have revealed that the carbon math behind this policy is deeply flawed. Replacing coal with wood pellets can increase near-term carbon emissions, particularly when whole trees are used instead of waste residues.
The production process for wood pellets involves energy-intensive steps such as drying, shredding, and pressing, which release carbon stored in standing trees immediately. Regrowth can take decades to offset the emissions, making biomass a less sustainable option than wind and solar energy.
Furthermore, wood has lower energy density than coal, requiring more volume to be burned to produce the same amount of electricity. This raises questions about the true cost of biomass power, which is often discussed only in global carbon terms.
Regulators have previously fined Drax for air pollution violations at its Gloster pellet mill, highlighting the local costs of an energy source that was once touted as a bridge fuel to reduce reliance on coal. The company's operations also raise concerns about tangible local air quality risks due to volatile organic compounds, methanol, and formaldehyde.
As policymakers re-examine their policies, regulators are increasingly focusing on truly sustainable sources of power. Drax's business model is shifting towards data centers, acknowledging that the market cannot sustain the company at previous levels.
The subsidies for biomass have been unusually high compared to wind and solar energy, with the UK providing around $1.1 billion annually in support. However, this payment schedule is set to be cut nearly in half after 2027, forcing Drax to reassess its long-term viability as a carbon-neutral energy source.
The UK-based power company converted Europe's largest coal plant into a biomass facility, relying on wood pellets imported from southern US states. However, recent lifecycle analyses have revealed that the carbon math behind this policy is deeply flawed. Replacing coal with wood pellets can increase near-term carbon emissions, particularly when whole trees are used instead of waste residues.
The production process for wood pellets involves energy-intensive steps such as drying, shredding, and pressing, which release carbon stored in standing trees immediately. Regrowth can take decades to offset the emissions, making biomass a less sustainable option than wind and solar energy.
Furthermore, wood has lower energy density than coal, requiring more volume to be burned to produce the same amount of electricity. This raises questions about the true cost of biomass power, which is often discussed only in global carbon terms.
Regulators have previously fined Drax for air pollution violations at its Gloster pellet mill, highlighting the local costs of an energy source that was once touted as a bridge fuel to reduce reliance on coal. The company's operations also raise concerns about tangible local air quality risks due to volatile organic compounds, methanol, and formaldehyde.
As policymakers re-examine their policies, regulators are increasingly focusing on truly sustainable sources of power. Drax's business model is shifting towards data centers, acknowledging that the market cannot sustain the company at previous levels.
The subsidies for biomass have been unusually high compared to wind and solar energy, with the UK providing around $1.1 billion annually in support. However, this payment schedule is set to be cut nearly in half after 2027, forcing Drax to reassess its long-term viability as a carbon-neutral energy source.