Drax Group, a leading carbon removals and renewable energy company, has sealed a significant carbon removals agreement with C-Zero Markets (C-Zero), an environmental consultancy, signaling a growing appetite in the maturing carbon market for high-quality carbon removals.
According to Drax, the deal underscores another concrete step towards delivering bioenergy with carbon capture and storage (BECCS) in the United States, positioning the company at the forefront of carbon-negative technology deployment.
Under the terms of the agreement, C-Zero will procure carbon dioxide removals (CDR) credits from Drax, representing 2,000 metric tons of permanently stored carbon, solidifying a previous memorandum of understanding (MoU) into a firm offtake agreement.
This deal is intricately linked to Drax's future plans for deploying carbon-negative BECCS technology in the US, highlighting the increasing demand for BECCS-derived carbon removals, noted the company. This announcement closely follows a recent firm offtake deal with Karbon-X, along with earlier MoUs with Respira and C-Zero.
Furthermore, Drax recently launched an independently operated business unit headquartered in Houston, Texas, signaling its ambition to emerge as a global leader in large-scale carbon removals.
This unit will spearhead the development and construction of Drax's new-build BECCS plants in the US and internationally, with a bold aim of removing at least 6 million tons of CO2 annually from the atmosphere.
Mike Ridler, CEO at C-Zero Markets, expressed enthusiasm about partnering with Drax, stating, “Drax is one of the leading players in the BECCS space, and we're thrilled to be partnering with them to help solve the other half of the climate equation with carbon removal.”
Ridler further emphasized the collaborative efforts between the two companies on process, compliance, and sustainability, underscoring their shared commitment to addressing climate change.
“It has been great to work with them on process, compliance and sustainability as this is fundamental to us as a business and to the clients we are supporting,” Ridler added.
