British power station operator Drax has warned it could move its £2bn plans for green energy plants abroad unless the government makes the UK friendlier for biomass energy.

Drax plans to build three new power stations that run on waste matter such as wood chips and straw pellets in Yorkshire and the Humber region, to supply low carbon electricity.

The projects comprise three 300MW renewable energy plants, one of which is to be built alongside the existing Drax plant, with the second earmarked for Immingham and a third site yet to be decided.

The government’s failure to subsidise biomass fuel to make it competitive with coal, however, would lead the power plant operator to build the plants abroad where subsidies are more favourable, the Yorkshire Post reports.

A Drax spokesperson was quoted by the paper as saying that if the firm cannot get a favourable regime for dedicated biomass plants, it will be forced to look overseas.