Government Contracts for Difference spark energy debate

In particular, plans for a new biomass plant in Grangemouth, Scotland have raised the ire of environmentalists, with Biofuelwatch lambasting the government for its CfD award. The environmental organisation has long disputed biomass’s renewable credentials, claiming it drives deforestation and produces more CO2 than coal per unit of electricity. Biofuelwatch has also expressed disappointment that six ‘energy from waste’ projects across England and Wales have received CfD awards.

“We are dismayed to see yet more subsidies going to power stations that will burn biomass and waste – neither of which are remotely sustainable,” said Almuth Ernsting, co-director of Biofuelwatch.

“We are particularly shocked to see money awarded to a large biomass power station in Grangemouth, one which we must assume will burn imported wood pellets or woodchips, in an already heavily polluted town. The UK already burns more wood in power stations than we can produce annually, which causes forest destruction in other parts of the world such as the southern US. Awarding more money to power stations to burn more wood is only going to make this problem worse.”