Drax to Invest Up to $12.5 Billion in US Biomass Plants With Carbon Capture and Storage

British power generator Drax could invest up to $12.5 billion to develop biomass plants with carbon capture and storage (BECCS) in the United States over the next decade, Reuters reported (9-24-24),

Drax, which generates around 6% of Britain’s electricity, said it is still committed to the UK but sees opportunities in the US for its BECCS technology.

Drax’s new Houston-based business, Elimini, is reviewing more than 20 potential sites for BECCS projects. Elimini plans to have its first US project up and running by the end of 2030 which will require a $2.5 billion investment, Elimini Executive Chair and Drax Group CEO Will Gardiner told Reuters.

As well as the BECCS plant capturing the emissions it creates by burning pellets, the absorption of greenhouse gases during the growth of the wood means its overall impact will be carbon negative, enabling it to generate carbon removal credits, the company said.

Many companies have set net zero emissions targets which require them to purchase carbon credits to compensate for the emissions they are unable to cut themselves. Some corporate giants such as Microsoft have said they are willing to pay a premium for removal credits, which take carbon emissions out of the atmosphere. Drax said it had already entered 11 carbon removal deals with eight companies.