Dozens of biomass projects will be axed after the Government decided not to award them subsidies — leaving some developers facing collapse and others threatening legal action.
Developers of so-called “dedicated” biomass power plants — smaller projects which are built specifically to burn biomass material such as straw or wood — had expected to secure financial support under the Government’s new green energy plan.
But in what the industry described as a U-turn, the Government said no extra subsidies, which would have been funded by levies on consumers’ energy bills, will be made available. It argues that it is cheaper to convert existing coal plants such as Drax in Yorkshire to burn biomass rather than building new ones.
Several dozen of these dedicated biomass projects, totalling 1,600 megawatts, which had received planning consent will not now be built.