Move comes after government said it would halve subsidies that allowed firm to make ‘unacceptably large profits’

The owner of the Drax wood-burning power plant will slow its investment in carbon capture to reduce its emissions despite securing an extra three years of government subsidies and earning record profits above £1bn last year.

Drax Group said it would commit less investment to fitting the technology at the North Yorkshire power plant unless the government provided clarity over the returns it could expect to make from the upgrade.