16:30 Michael Shanks (Labour)

In coming to the view I will express today, we have taken advice from the National Energy System Operator on questions of security of supply, analysed the effect on consumers of support for biomass versus the alternatives, looked at issues around subsidy and sustainability in the existing arrangements, and considered longer term issues around decarbonisation.

Fourthly, we have looked at issues with decarbonisation. Our finding is that there is a potential role for bioenergy with carbon capture and storage—or power BECCS—but realistically this will take time to implement and therefore cannot form the primary basis of this decision. On the basis of that assessment, and given the circumstances that we inherited, the clear evidence is that Drax is important for delivering a secure, value-for-money power system in the period 2027-31. But we have also concluded that we cannot allow Drax to operate in the way in which it has before, or with the level of subsidy that it received in the past. On that basis, we have secured heads of terms that will form the basis of a very different agreement with Drax for support during the period 2027 to 2031.

We will do the work that was not done by the previous Administration on strong and credible low-carbon alternatives, so that in four years’ time we will have proper options. To help that process, we are setting up an independent review to consider how options for greenhouse gas removal, including large-scale power BECCS and direct air carbon capture and storage, can assist the UK in meeting our net zero targets and ensure security of supply out to 2050. The review will take representations widely on the issues and report back in due course.

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16:39 Andrew Bowie (Conservative)

I thank the Minister for advance sight of this statement. In the past few weeks it has been difficult not to feel at least a little sorry for Ministers in the Department for Energy Security and Net Zero. First, their Secretary of State was forced out of hiding to defend a third runway at Heathrow—something that he once said that we could not do because it would make us look “completely ridiculous”. Cornwall Insight has stated that Ministers will miss their clean power target by a country mile, and I think it was clear during the urgent question that they are getting ready to be overruled by the Prime Minister on approval of the Rosebank and Jackdaw oil and gas fields—something that we on the Opposition Benches would welcome.

Now the Secretary of State has sent the hon. Gentleman to the House this afternoon to defend the farce of chopping down trees in forests in Canada, converting them into pellets, shipping them across the Atlantic on diesel-chugging ships and burning them in a power station in North Yorkshire, all in the name of net zero. The Conservative party is under new management, and that means confronting hard truths, so let us get one thing straight from the outset: Drax’s biomass plant is neither clean, nor cheap.

As my right hon. Friend the Member for East Surrey (Claire Coutinho) has said, burning wood from the other side of the Atlantic—releasing more carbon dioxide in the process—and labelling it renewable is a product of a carbon budget system that forces politicians to make perverse decisions. Those decisions result in an extortionate level of subsidy, deliver a bad deal for British taxpayers and bill payers, and make the climate worse. We have started a reset on net zero, and we will not shy away from arguing for a more pragmatic approach that prioritises cheap, stable and reliable energy.

Will the Government set a date for the burning of the last tree in a British biomass power station? This Government have been promising us clean, cheap, home-grown energy, but burning trees at Drax is not clean or cheap, and the trees are certainly not home-grown. If the widespread burning of forests is part of the solution to climate change, we have to ask ourselves if that is the problem we are trying to solve.

I call the Chair of the Energy Security and Net Zero Committee.

Climate change and nature loss are undoubtedly the greatest twin threats we face. While pursuing the clean power by 2030 goal, the Government need to reconsider their decision to indeterminately extend the burning of biomass as part of the energy mix, despite overwhelming evidence that it is neither sustainable nor truly renewable, especially with the threat to virgin forests. The Minister says biomass is vital for energy security, supplying 5% of the UK’s electricity. However, he fails to mention that biomass emits 18% more carbon dioxide than coal and that it takes nearly a century for new trees to absorb those emissions. That is not energy security; it is a carbon ticking time bomb.

We are told by the Minister that NESO advised that Drax was a necessity between 2027 and 2031 to prevent supply risks. That is due to the reckless rowing back by the former Government, the absence of accelerated investment in renewables and the continued investment in Drax as part of their strategy, but what kind of future are we building if it depends on burning forests rather than investing in real renewable energy sources?

Drax has exploited UK taxpayers for far too long. It has lied about meeting sustainability rules, burned 1 million tonnes of wood from primary forests, gagged whistleblowers with non-disclosure agreements, and pretended that it could sequester carbon from replanted forests in time to meet our 2050 targets. Today, the Government have brought that a stop. They have debunked Drax’s lies, cut its subsidy, and set a clear and sensible exit strategy that will maintain security of supply. After 15 years of campaigning, I welcome this breakthrough for honesty and common sense.

The Minister should be commended for ending the terrible deal negotiated by the previous Conservative Government, which led to higher bills, excess profits and poor sustainability standards, but it is worth saying again that there seems to be no end to the Conservatives’ rank hypocrisy on energy policy. In government, the then Secretary of State for Energy Security and Net Zero, the right hon. Member for East Surrey (Claire Coutinho), signed off planning consent for the Drax carbon capture project, saying that

The net zero madness coming from this place is truly staggering. Bearing in mind that this power station used to burn coal from a coalmine less than 20 miles away, we are now transporting wood from 3,000 miles away. We are paying over £10 billion in subsidies for this power station, and it is producing four times more CO 2 than a coal-fired power station. Can the Minister explain how this is contributing to net zero?

I am proud that, as a country, we have moved past coal-fired power generation, which is incredibly destructive for our environment. We closed the last coal power station, at Ratcliffe-on-Soar, last year. Its workforce proudly recognised the role they played in powering the country for many years, while also recognising that the drive to net zero is important. While we are building a clean power system that delivers energy security for the future, the Reform party would take us back to the stone age.

The right hon. Gentleman is right that we want “credible low carbon alternatives”. I will look at the specific points he mentions, but we do not see such generators as key to the review we want to undertake. We want to look at carbon capture and other technologies and, crucially, how we store some of the renewable energy that we are generating in abundance that we cannot use at times of peak demand, including long-duration energy storage and, increasingly, short-duration energy storage batteries that are powering more than they have done in the past. I will look at the specific points the right hon. Gentleman raises.

My hon. Friend also touched on the important work we need to do in the broader energy space to deliver energy security. That is why clean power 2030—our sprint to deliver decarbonised power—is so important, delivering good jobs in supply chains across the country.

This statement should be a warning to all those across the House who are cheerleaders for renewable energy. Let us not forget that, in 2010, Drax power station was the poster boy for green energy policy. Of course, it turned out that instead of green energy, it has produced more CO 2 . We have chopped down natural habitat 3,000 miles away to bring it and burn it in a power station in England, and consumers pay the grand total of £1,000 million a year for the pleasure of doing so.

At the risk of getting into trouble with those responsible for tax matters, I simply say that this is a windfall mechanism that does exactly the same thing, and it does exactly what the Conservatives failed to do in 14 years, which is to ensure that there is a good deal and good value for money for the British public, delivering on energy security and, crucially, getting us to a point where our clean power plan for 2030 delivers energy security, climate leadership and jobs right across the country. It is the ambition of doing something different in this country and doing it fast, and we are committed to delivering it.

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