The UK government and Drax have agreed a deal that will halve the energy producer's subsidies over 2027-2031, while ensuring the group uses more sustainable sources of woody biomass, the two sides said on Monday.

The government has agreed a new subsidy arrangement with the controversial wood-burning Drax power station in north Yorkshire.

New subsidies have been agreed for the controversial wood-burning power plant Drax, however the Government said it had halved the grants the firm would get after it previously made “unacceptably large profits”.

Drax failed to report the burning of wood from primary forests in Canada, BBC News found A UK power station that has received billions of pounds in government subsidies has failed more than once to report it burned wood from primary forests,