Summary:
The company behind the Drax nuclear power plant has been told it no longer qualifies for a contract to use wood pellets.

Full article:
Britain's biggest power station is suing the Government for losing a lucrative contract after a Mail on Sunday investigation revealed that it burns wood from precious US forests as a ‘green’ alternative to coal. Drax is committed to switching from coal to ‘biomass’, or wood pellets. In December, Energy and Climate Change Secretary Ed Davey promised the North Yorkshire plant two lucrative ‘contracts for difference’ – which would see it earn £105 for every megawatt hour it generates, rather than the normal price of £50. Britain's biggest CO2 polluter: Drax is suing the Government for losing a lucrative contract after a Mail on Sunday investigation revealed that it burns wood from precious US forests as a ¿green¿ alternative to coal . The extra money would come from subsidies funded by consumers’ household bills. But this paper revealed that much of its biomass is shipped in from historic wetland hardwood forests – 3,000 miles away in North Carolina. Environmentalists say this is destroying endangered species’ habitats, and increasing greenhouse gases in the atmosphere. Ministers have now withdrawn their promise to guarantee profits for the part of the plant using biomass. This wiped £400million off the company’s share price and prompted the firm to start legal action. A spokesman for Mr Davey said: ‘Drax was informed that this project no longer qualifies for the award of contract.’