British power generator Drax announced on Tuesday its intention to invest up to $12.5 billion in developing biomass plants with carbon capture and storage (BECCS) technology in the United States over the next decade. The company, which currently generates approximately 6% of Britain's electricity, remains committed to its UK operations while also identifying opportunities for BECCS in the U.S. market.
Drax's new Houston-based business, Elimini, is currently assessing more than 20 potential sites for BECCS projects and employs around 100 staff members. According to Elimini Executive Chair and Drax Group CEO Will Gardiner, the company aims to have its first U.S. project operational by the end of 2030, with an initial investment of $2.5 billion. “We are aiming to do more over the next decade,” Gardiner stated.
The BECCS technology employed by Drax not only captures emissions generated from burning wood pellets but also takes into account the greenhouse gases absorbed during the growth of the wood. This dual process allows for a carbon-negative overall impact, enabling the company to generate carbon removal credits.
As more companies set net-zero emissions targets, there is an increasing demand for carbon credits to offset unavoidable emissions. Notably, major corporations like Microsoft have expressed a willingness to pay a premium for removal credits that effectively sequester carbon from the atmosphere. Drax has already secured 11 carbon removal agreements with eight companies.
However, the practice of biomass power generation has faced criticism from environmental groups, which argue that it is not truly carbon-neutral and that pellet production can contribute to deforestation. Drax maintains that it sources only wood residuals or byproducts from trees primarily harvested for lumber, asserting that demand for sustainably sourced wood can contribute to forest growth.
Source: Reuters
