Government’s approach to biomass compliance raises concerns, NAO report

The UK government’s allocation of over £20 billion in support to biomass businesses for power and heat sectors is being questioned in a report by the National Audit Office (NAO). The report states that the government cannot demonstrate the adequacy of its approach to ensuring compliance with sustainability requirements for biomass generators. Biomass, derived from plants or food waste, accounted for 11% of the UK’s electricity generation in 2022.

To be considered low-carbon, biomass generators must adhere to sustainability criteria monitored by Ofgem. However, the government has not evaluated the effectiveness of its current arrangements in ensuring compliance. The NAO recommends a review of assurance arrangements and sufficient resource allocation.

The Department for Energy Security and Net Zero (DESNZ) says it has committed to strengthening sustainability criteria. The government’s long-term climate targets rely on the success of its carbon capture utilisation and storage (CCUS) program, including biomass with carbon capture and storage (BECCS). The report highlights that there are currently no operational BECCS plants in the UK.

DESNZ is considering providing transitional support for large-scale biomass generation beyond 2027 to facilitate their conversion to BECCS. The NAO suggests publishing the environmental impact of continuing subsidies for unabated biomass after 2027. If biomass falls short of expectations, DESNZ may need to explore other strategies to achieve its 2050 net-zero target.

Gareth Davies, head of the NAO, said:

“If biomass is going to play a key role in the transition to net zero, the government needs to be confident that the industry is meeting high sustainability standards. However, government has been unable to demonstrate its current assurances are adequate to provide confidence in this regard. Government must review the assurance arrangements for these schemes, including ensuring that it has provided adequate resources to give it assurance over the billions of pounds involved.”