Labour to halve subsidies for biomass energy supplier after pressure from eco activists The Government plans to halve the subsidies it pays to biomass energy supplier Drax Group to operate its North Yorkshire power station.
Proposal: The UK Government plans to halve the subsidies it pays Drax Group to operate its power station in North Yorkshire, which is the world's largest biomass plant.
Under the deal, Drax must increase the proportion of its woody biomass coming from sustainable sources from its current level of 70 per cent to 100 per cent.
The Selby powerstation, which has already received £6billion in subsidies, is the world's largest biomass plant and supplies about 10 per cent of the UK's renewable energy, which can rise to over half during peak demand.
Drax Group shares were 3.7 per cent higher at 658.5p on late Monday morning, taking their gains over the past 12 months to around 48 per cent.
