Energy Secretary embroiled in new Drax greenwashing row

Energy Secretary Faces Scrutiny Over Drax Subsidies and Pollution Claims

US advocacy groups are accusing Energy Secretary Ed Miliband of enabling pollution in a Mississippi community by allocating billions in taxpayer funds to Drax Group, a UK power firm. The activists claim that the company’s operations are detrimental to the health of local residents. This controversy casts a shadow on Miliband’s commitment to green initiatives.

Drax and Wood Pellet Production

Drax Group runs a power station in Selby, North Yorkshire, that produces power by incinerating wood pellets. A large portion of these wood pellets originates from forests in the United States, after which they are transported to the UK.

Environmental Concerns in Gloster, Mississippi

Activists in Gloster, Mississippi, where Drax operates a wood pellet manufacturing facility, allege that emissions from the plant have fostered health problems among nearby inhabitants. Reported ailments include heart conditions, carcinomas, and respiratory issues.

Drax’s Carbon Neutrality Claims

Each year, Drax combusts millions of tons of wood pellets, asserting that this method is carbon neutral due to the potential for carbon dioxide offset by planting new trees. However, environmental organizations challenge these claims.

Government Subsidies to Drax

Despite the ongoing debate, Drax has been the recipient of substantial green energy subsidies from the government. Earlier this year, Miliband sanctioned an additional £2 billion in taxpayer money for the group over the subsequent four years.

Activists’ Concerns and Miliband’s Reputation

These concerns will be voiced at the Drax annual shareholder meeting on Thursday, potentially causing embarrassment for Miliband, given his emphasis on environmental advocacy.

Disproportionate Impact on Minority Communities

Adding to the controversy, Gloster’s population consists primarily of African Americans, with a significant percentage living below the poverty threshold.

Comments from Campaigners

Campaigner Katherine Egland noted, “Impoverished, primarily communities of color – descendants of slaves – in the southeastern U.S., are exposed to dangerous emission levels due to Drax’s wood pellet manufacturing.”

Role of the NAACP

Egland leads the Environmental and Climate Justice Committee of the National Association for the Advancement of Colored People (NAACP). The association, which has a history of working with Dr. Martin Luther King Jr. for civil rights, is representing Gloster residents at the shareholder meeting.

Allegations Against Miliband and the Government

Egland accused Miliband and the government of “aiding and abetting” Drax’s pollution, stating that the £2 billion incentive enables Drax to “continue robbing poor people of the right to breathe clean air and drink clean water.”.

Regulatory Scrutiny in the US

Drax’s operations are facing growing investigation from US officials. Earlier this month, Mississippi regulators rejected the company’s request to increase the permitted pollution level at its Gloster facility.

Past Penalties and Fines

In the previous year, the state levied a $225,000 penalty against the firm for exceeding hazardous air pollutant emission limits by 50 percent. This action followed a $2.5 million fine in 2020, which stood as one of Mississippi’s most substantial penalties for underreporting pollutant emissions since 2016.

Ofgem Fine

The firm received a £25 million fine last year by regulator Ofgem over its sourcing practices.

Parliamentary Concerns

Legislators are exhibiting increasing unease regarding the amount of taxpayer funding allocated to the company for electricity generation.

Public Accounts Committee Report

In a report released on Friday, Parliament’s Public Accounts Committee suggested that there is a potential risk that energy customers are not receiving sufficient “value for money” from taxpayer subsidies granted to Drax.

Drax’s Response

A Drax representative responded, “The safety of our personnel and the communities where we operate is paramount. We have established a community advisory panel, comprising local leaders and inhabitants, to better comprehend and address their apprehensions. All Drax facilities in the United States have maintained air emissions below permissible limits since December 2023.”

Government Statement

A spokesperson for the Department for Energy Security and Net Zero stated: “Investment in clean energy is a vital for ending the UK’s energy insecurity and tackling the climate crisis. We are reducing support for Drax, thereby saving money on energy bills and supporting our energy security efforts.”

“Under a refined power system, Drax will operate for reduced durations and exclusively utilize 100 percent sustainably sourced biomass, ensuring that subsidies are allocated only for compliant practices.”