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Drax under scrutiny over wood pellets for biomass power plant
The Guardian
|August 29, 2025
The power generator Drax has revealed it is under investigation by the City watchdog over "historical statements" made about the sourcing of wood pellets for its biomass power station.
The Financial Conduct Authority confirmed the investigation yesterday, which will cover a period of more than two years between January 2022 to March 2024 and examine whether the company complied with disclosure and transparency rules.
Drax said the FCA investigation related to "certain historical statements regarding the company's biomass sourcing and the compliance of Drax's 2021, 2022 and 2023 annual reports with the listing rules and disclosure guidance and transparency rules". It added: "The company will cooperate with the FCA as part of their investigation."
Drax is expected to receive more than £10bn in renewable energy subsidies between 2012 and 2027, the current regime period, according to the thinktank Ember. This is despite concerns that wood pellets are not always sustainably sourced.
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