Ofgem, the UK's energy regulator, is investigating whether power company Drax has adhered to sustainability regulations concerning its biomass operations. The probe was prompted by a BBC documentary that raised doubts about the sustainability of Drax's Canadian wood supply, FT reported.
Ofgem previously informed the Low Carbon Contracts Company that Drax had provided documentation demonstrating the certification of its Canadian woody biomass under the Sustainable Biomass Program. However, in response to increased questioning, Ofgem has commissioned a third-party audit by US-based consulting group Black and Veatch. Drax CEO Will Gardiner was previously associated with the Sustainable Biomass Program.
Last year, the company found itself in a position of having to clarify its possession of two Canadian forest logging licenses. It defended its ownership by highlighting the agreements it had established with sawmilling companies, which allowed for the transfer of rights and the utilization of "residual" wood. The government of British Columbia described this arrangement as "uncommon."
