Activists call for halt to aid to polluting company Drax

The Labour Party is facing growing calls to block financial support for Drax after the “green” energy firm was fined for air pollution in Mississippi.

Drax, which has received more than £6bn in subsidies for its North Yorkshire power station, is currently waiting for ministers to decide whether to extend the subsidies beyond 2027.

One campaigner said it was “ridiculous” that the government was even considering the move, given the FTSE 250 company’s environmental record.

The latest fury comes after Drax was fined more than £170,000 by Mississippi regulators earlier this month for “repeated instances of hazardous air pollutants”.

The group’s Mississippi plant produces wood pellets from trees sourced in southern states, which are then burned as fuel at Drax’s power station in Selby, North Yorkshire. But the plant has previously come under fire, having breached air pollution rules in 2020, when Drax was fined £1.9m.

US campaign group Dogwood Alliance has now criticised the UK government for its approach: “The fact that the UK government is even considering giving Drax any further subsidies is ridiculous.

“The company has done nothing but destroy forests, pollute communities and the atmosphere in the southern United States since it began operations here ten years ago,” a spokesman said.

“Labour must stop this madness and stop wasting taxpayers’ money on this dirty and destructive industry,” he added.

And Almuth Ernsting, of the campaign group Biofuelwatch, said it would be “unconscionable” for ministers to approve further subsidies for Drax.

Last week the government insisted that no decision had been taken.

A spokesperson for the Department for Energy Security and Net Zero told the Mail: “We expect all regulatory obligations on biomass to be fully met. Subsidies for large-scale biomass generators will end in 2027 and we are reviewing evidence on possible support beyond that.”

Drax posted profits of £515m for the six months to the end of June, up from £417m in the first half of last year.