Drax Power Station received a record £999 million in subsidies in 2025, a 15% rise from the previous year, according to analysis by Ember.
The amount is equal to about £13 annually for every household in the UK. Despite receiving substantial public support, Drax has remained the country’s largest emitter for the past 10 years, the report said, Bioenergy Insight reported.
Emissions from the plant are currently rated as zero under carbon accounting rules because they come from burning woody biomass. This classification allows the company to continue receiving subsidy payments.
The power station entered the final year of its higher subsidy phase in April 2026. Payments are expected to fall to around £460 million per year from 2027. However, Ember said that due to the scale of biomass use, Drax is likely to remain the UK’s largest emitter until at least 2030.
Frankie Mayo, the report’s author, described the subsidy level as “an astonishing high-water mark,” while noting that the expected reduction in payments is a positive step. He added that such a situation should not have arisen for taxpayers.
The long-term outlook for biomass use at Drax remains uncertain. The company has indicated reduced confidence in its ability to implement a planned carbon capture project. Earlier analysis by Ember suggested that shifting to bioenergy with carbon capture would require about £30 billion in additional subsidies, exceeding the total budget currently allocated for carbon capture and storage.
