Drax US https://www.drax.com/us/ Drax is enabling a zero carbon, lower cost energy future Fri, 16 Aug 2024 15:05:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.5 Powering green jobs and economic growth in rural America https://www.drax.com/us/opinion/powering-green-jobs-and-economic-growth-in-rural-america/ https://www.drax.com/us/opinion/powering-green-jobs-and-economic-growth-in-rural-america/#respond Fri, 16 Aug 2024 15:02:36 +0000 https://www.drax.com/us/?p=16737 By Jessica Marcus, Head of Public Affairs and Policy, North America Two years on from the announcement of nearly $400 billion in U.S. Inflation Reduction Act (IRA) investments, clean energy is rapidly expanding across North America. This expansion has been accelerated by the need for a shift away from fossil fuels and the falling cost... Read more »

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By Jessica Marcus, Head of Public Affairs and Policy, North America

Two years on from the announcement of nearly $400 billion in U.S. Inflation Reduction Act (IRA) investments, clean energy is rapidly expanding across North America. This expansion has been accelerated by the need for a shift away from fossil fuels and the falling cost of renewable energy sources. The amount of wind power in North America has more than tripled since 2010, with forecasts from the U.S. Department of Energy indicating that it will more than double again over the next 25 years, and the biomass energy output in the U.S. increased by almost 20% between 2012 and 2022  

As we celebrate its two-year anniversary, it is clear that rural communities have benefited the most from IRA investments, which have opened new prospects for towns that have faced decades of decline. 

The decline of traditional industries rural communities relied on 

Historically, industries like pulp and paper manufacturing and coal mining have provided the economic backbone for rural towns across North America. With the progressive decline of these sectors over the past 20 years, rural communities have been left with fewer and fewer alternatives for local workers. Particularly in hard-hit states across the US South like Mississippi and Alabama, communities are looking for other reliable sources of income to provide a dependable path back to prosperity 

Demand for clean power is poised to soar 

In North America, the use of renewable energy – including biomass, solar, and wind power – has been rising rapidly, nearly quadrupling in the U.S. between 2011 and 2020. The Inflation Reduction Act (IRA) has played a crucial part in this expansion and President Biden’s recent announcement of an additional $24 million to further grow sustainable energy in the U.S. highlights the continued commitment to this transformation. Canada is also making significant progress, with Quebec developing its hydroelectric industry and Alberta leading the way in wind energy installations.   

The need for green electricity will only grow, with energy demand projected to double by 2030 – due in large part to the increased power consumption of datacenters underpinning modern technologies like blockchain and artificial intelligence. Organizations across the globe will also be striving to meet climate targets set out between the 2030s and 20240s, further driving up the demand for green power.  

Rural areas now have an opportunity to profit from the global energy shift, with studies showing that clean energy will provide more and more jobs in places that have historically been hubs for fossil fuel industries. 

Green jobs: a pathway back to prosperity for rural communities 

The International Labour Organization predicts that by 2030, the shift to a green economy could provide 24 million new jobs globally. In North America, green jobs can provide a route back to prosperity for rural towns, making it possible for these regions to tap into the economic prospects brought about by the global energy transition. A significant amount of IRA funds have been allocated to supporting rural communities, with 25% of large scale clean energy projects announced in the first year of the IRA located in demographically rural areas. Similar efforts are being made by the Canadian government to assist renewable energy projects that stimulate rural economic growth.  

With a majority of its operations taking place in rural areas, the biomass industry is a major player in this shift – especially in areas that were previously dominated by the coal and paper industries. Drax’s own operations have contributed directly to growing of rural economies through the production of biomass from low-grade forestry by-products and residues. Drax’s expansion throughout the Southeast of the United States has resulted in the reopening of sawmills and the creation of hundreds of jobs in communities that had seen an industrial decline across Louisiana, Mississippi, Arkansas, and Alabama. In 2023, Drax’s operations boosted the GDP of Alabama, Arkansas, Louisiana, and Mississippi by more than $1 billion. The company is having a similar impact in British Columbia and Alberta, where the wood pellet sector continues to grow. 

The surge in clean energy investment is not only transforming the energy landscape but also revitalizing rural communities. The energy transition provides the lifeline that North America’s rural towns need to overcome the loss of old industries and begin to thrive once more through green jobs.  

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Empowering Mississippi’s Next Generation of STEM leaders https://www.drax.com/us/opinion/empowering-mississippis-next-generation-of-stem-leaders/ https://www.drax.com/us/opinion/empowering-mississippis-next-generation-of-stem-leaders/#respond Wed, 07 Aug 2024 15:00:54 +0000 https://www.drax.com/us/?p=16730 At Boys & Girls Clubs of America, one of our top priorities is ensuring all youth have the tools and support to be successful in school and life.

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Through art classes and science experiments, tutoring and homework help, more than 5,400 Clubs engage K-12 students in after-school and summer programming that foster a love of learning. Our programs reinforce what kids and teens are learning at school, while sparking new interests and passions. And every year, one million of these experiences are centered around Science, Technology, Engineering, and Math (STEM). 

Exposing kids to STEM early on is essential. STEM activities ignite children’s natural curiosity, inspiring them to unleash their creativity and enhance problem-solving skills. In addition to building technical skills, Boys & Girls Clubs’ STEM programming develops essential or “soft” skills in young people, such as communicating effectively, collaborating with others and navigating challenges, that are critical for their success after high school graduation. 

This fall, as students and families prepare for a new school year, BGCA is moving full steam ahead in providing enriching after-school activities that make STEM interactive and fun. And thanks to our partnership with the Drax Foundation, we’re bringing STEM experiences to more kids in communities that need it most.  

Mississippi is one of the lowest ranking states in STEM job growth and education. In the last seven months, Drax’s support has enabled Boys & Girls Clubs of the Gulf Coast and Boys & Girls Clubs of Central Mississippi to grow the strength and reach of their STEM programming. Drax also extended their support to three more Mississippi Club locations – Boys & Girls Clubs of Covington County, Southwest Mississippi, and the Golden Triangle – to elevate their STEM resources, staff training and more. 

In total, the Drax Foundation’s generous gift of $130,000 in grant support will enable all these organizations to provide STEM experiences to roughly 3,200 Mississippi youth over the next two years. 

These five Clubs operate in communities where schools lack certified teachers in STEM subjects, particularly in science and math. Young people in these areas also have limited exposure to tech and robotics learning experiences. Our partnership with the Drax Foundation helps ensure that youth attending these Boys & Girls Clubs in Mississippi CAN envision a future in STEM.  

“Our number one goal is to teach kids to be both users and creators of technology to give them sustainable careers and expose them to coding, robotics and what’s possible for life outside of high school,” said Morgan Bogolin, Senior Director of Operations at Boys & Girls Clubs of the Gulf Coast. 

Through fun, age-appropriate STEM experiences tailored to their local areas, kids attending these Clubs can explore possibilities within these fields. These opportunities meet kids where they are and feature engaging programs such as advanced virtual reality, robotics, music and video production, graphic design, STEM-based field trips (including Club kids participating in Mississippi State University’s STEAM DAY), and DIY STEM, which is Boys & Girls Clubs of America’s signature hands-on, activity-based STEM curriculum for youth ages 9-12.  

“At Boys & Girls Clubs of America, we are dedicated to providing equitable access to opportunities and experiences that empower youth to become the leaders, innovators, and problem-solvers of tomorrow,” said Lisa Anastasi, Executive Vice President and Chief Development & External Relations Officer for Boys & Girls Clubs of America. “That’s why we are thrilled to continue our partnership with the Drax Foundation, which will significantly increase the number of young people participating in high-quality STEM programs at select Mississippi Clubs, equipping our members with the skills they need for a successful future after high school.”  

Boys & Girls Clubs of America is grateful for the Drax Foundation’s tremendous support, empowering more youth in Mississippi to pursue STEM interests, skills and careers. Learn more about how Boys & Girls Clubs of America are building great futures for young people nationwide at www.bgca.org. 

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BECCS: Strengthening the power grid against extreme weather https://www.drax.com/us/opinion/beccs-strengthening-the-power-grid-against-extreme-weather/ https://www.drax.com/us/opinion/beccs-strengthening-the-power-grid-against-extreme-weather/#respond Tue, 02 Jul 2024 14:27:41 +0000 https://www.drax.com/us/?p=16697 By Raj Swaminathan, Senior Vice President, North American Projects This week, those of us who live in the United States will celebrate Independence Day. It’s a holiday where we carve out time to reflect on the freedoms we’re able to enjoy and, for many, it can also be a day where we contemplate the freedoms... Read more »

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By Raj Swaminathan, Senior Vice President, North American Projects

This week, those of us who live in the United States will celebrate Independence Day. It’s a holiday where we carve out time to reflect on the freedoms we’re able to enjoy and, for many, it can also be a day where we contemplate the freedoms we’re still actively pursuing for the future.  

After more than 25 years of working in the energy industry it’s possible I could be a little biased, but I firmly believe one of our nation’s most important pursuits is energy independence. When we hear the term “energy independence”, many of us think of having enough energy supply to avoid relying on other countries for imports – but there’s another key ingredient in energy independence that’s just as important: energy reliability. 

As storms and temperature swings become more severe due to climate change, the power grid needs greater resilience to handle the strain from above average air conditioner or heater usage. When the stress becomes too great the grid can drop, leading to dangerous or even life-threatening situations for those left exposed to the extreme weather. 

At the same time, demand for power is soaring, and a growing percentage of our power is being generated from intermittent renewables like wind and solar that can’t be turned up on demand to offset additional strain. 

Bioenergy with carbon capture and storage (BECCS) is one of the only renewable technologies that can diversify our nation’s energy portfolio, provide stable baseload power, and contribute to US energy independence – all while removing carbon from the atmosphere. 

Diversifying our nation’s energy portfolio with BECCS 

In the winter of 2021, Texas experienced an unusually bitter cold snap. At that time, approximately 42 percent of the state’s power was generated from natural gas, and more than half of the supply was impacted by weather-related conditions including power outages and frozen equipment. Overall, the natural disaster caused 4.5 million homes to lose power, 57 people lost their lives, and over $195 billion in property damage occurred. 

Just like a diversified stock portfolio helps reduce an investor’s risk, a diversified energy portfolio helps reduce the risks from a specific energy source failing. Sustainable biomass, the fuel underpinning BECCS, is a unique source of renewable energy that further defends power grids against the supply and production issues that can become points of failure with less diversified energy mixes. 

BECCS anchors intermittent energy sources 

Historically, when unusually high demand strained the grid, power stations could use more fossil fuels to temporarily generate more energy. As these legacy fuel sources continue to get phased down to minimize emissions, intermittent alternatives like wind and solar are playing a larger role in America’s energy mix. 

Because sunshine and wind can’t be dialed up on demand, this can become problematic when extreme weather sets in and power demand spikes. Powered by sustainable biomass, BECCS offers a unique source of renewable power that can be ramped up around the clock, seven days per week. Because of this, BECCS can serve as the backbone of renewable power grids – a role that fossil fuels often fill today. 

BECCS will contribute to US energy independence 

As evidenced in the fallout from the Russian invasion of Ukraine, relying on other nations to help supply our energy opens our country to geopolitical risks. 

Not only will BECCS help to diversify power grids, but it will also contribute more power to the grid at a time when experts have warned a massive energy crunch is quickly approaching. As modern technologies like AI and blockchain continue to progress toward mainstream adoption, the datacenters underpinning them could see energy consumption double by 2030. Without exponentially more power generation, this translates to a shrinking buffer for grid strain before blackouts start to happen, while at the same time climate change is causing the frequency and scale of extreme weather – and related high energy usage – to worsen. 

Drax’s US BECCS facilities will also be built in regions where they can source biomass locally. This not only makes those facilities more sustainable by reducing transportation emissions, but it also means they will be producing renewable fuel domestically. This production can be ramped up when needed, and sustainable biomass stores can be held in reserve for emergencies. 

While it will take a number of solutions to meet America’s projected energy needs, Drax’s planned BECCS facilities in the US will contribute to both the energy supply and diversification needed to help our country achieve an independent and more reliable energy future. And it will do so while permanently removing legacy CO2 emissions.  

I hope everyone in the US has a safe and meaningful Independence Day. 

To learn more about BECCS by Drax, visit www.draxcarbonremovals.com/beccs-technology 

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3 Takeaways from the 2024 SFI Conference https://www.drax.com/us/opinion/3-takeaways-from-the-2024-sfi-conference/ https://www.drax.com/us/opinion/3-takeaways-from-the-2024-sfi-conference/#respond Thu, 13 Jun 2024 14:53:10 +0000 https://www.drax.com/us/?p=16670 By Kyla Cheynet, Director of Sustainability, Drax US I was delighted to be joined by my colleagues and industry leaders at the annual Sustainable Forestry Initiative® (SFI) conference that took place in Atlanta, Georgia from June 4-6. This year’s conference featured a diverse line-up of inspirational presentations and panel discussions that demonstrate the value of... Read more »

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By Kyla Cheynet, Director of Sustainability, Drax US

I was delighted to be joined by my colleagues and industry leaders at the annual Sustainable Forestry Initiative® (SFI) conference that took place in Atlanta, Georgia from June 4-6. This year’s conference featured a diverse line-up of inspirational presentations and panel discussions that demonstrate the value of SFI®  certification to achieving nature, people, and climate positive benefits in working forests. 

Biomass is a key element in the road to net zero

At Drax, we aim to be a global leader in sustainable biomass. Sustainably sourced biomass is a renewable, low carbon source of energy and a key element in the road to net zero. This is at the heart of our purpose. Additionally, sustainable biomass can play an important role in supporting forest health. Well-managed forests are effective at absorbing and storing carbon dioxide (CO2) from the atmosphere. 

Biomass plays an important role in forest management

We are committed to sourcing sustainable biomass that achieves both decarbonization and positive forest outcomes. Drax forms part of a wider forest industry where forest management is geared primarily towards producing material for the construction and manufacturing sector. The material we use to make pellets includes sawmill and forest residuals as well as low-grade roundwood – wood that is not suitable for sawmilling or cannot access higher-value markets.   

Markets for low-grade roundwood, including the by-products of thinning operations and regeneration harvests in the U.S. South, encourage sustainable forest management practices. For example, thinning, an intermediate harvesting technique which removes trees from forests in order to regulate stand density, increase growth, maintain forest health, reduce wildfire hazard, and improve biodiversity by allowing more sunlight to hit the forest floor.   

Partnering with other organizations creates tremendous synergies

An incredible testament to the power of conservation partnership was highlighted by the “Conservation of Species at Risk in SFI-certified Forests” panel chaired by Dr. Healy Hamilton SFI’s Chief Scientist. The discussion, which included the U.S. Fish and Wildlife Service, non-profit conservation groups, and forest industry participants, highlighted the benefits that forest management and sourcing, guided by SFI certification, can have on the maintenance and recovery of at-risk species 

I’m proud that Drax pellet plants in the US are all currently certified, or actively in the process of certifying, to both the SFI Fiber Sourcing and SFI Chain of Custody Standards (SFI-01578). We also source directly from corporate landowners who are certified to the SFI Forest Management Standard.  SFI certification helps not only provide a framework for assuring and verifying sustainability, it supports us in our efforts to achieve Nature, People, and Climate Positive outcomes.  

Learn more about our work on sustainability at https://www.drax.com/us/sustainability/

*SFI marks are registered marks owned by the Sustainable Forestry Initiative Inc. 

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[Carbon Capture Magazine article] Spiking Energy Demand https://www.drax.com/us/opinion/carbon-capture-magazine-article-spiking-energy-demand/ https://www.drax.com/us/opinion/carbon-capture-magazine-article-spiking-energy-demand/#respond Tue, 07 May 2024 10:58:23 +0000 https://www.drax.com/us/?p=16618 This story first appeared in Carbon Capture Magazine. By Raj Swaminathan, Senior Vice President at Drax. While there’s little debate that the greenhouse gas emissions that sit at the heart of our planet’s unprecedented warming come from fossil fuel consumption and other human activities, clawing back these carbon outputs is a multi-faceted issue. In addition... Read more »

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This story first appeared in Carbon Capture Magazine.

By Raj Swaminathan, Senior Vice President at Drax.

While there’s little debate that the greenhouse gas emissions that sit at the heart of our planet’s unprecedented warming come from fossil fuel consumption and other human activities, clawing back these carbon outputs is a multi-faceted issue. In addition to efforts to transition to renewable power sources like wind, solar, and biomass, which remain essential to mitigating this crisis, leading scientists agree that reducing emissions is not sufficient; we must go further and faster with carbon removals.

It’s estimated that we’ll need to capture and store as much as 9.5 billion metric tons of CO2 every year by 2050 to reverse legacy emissions enough to achieve international climate targets, according to the IPCC. Today, carbon removal facilities only capture a fraction of the emissions generated across the planet, and we urgently need a spectrum of high-quality solutions to scale our ability to remove carbon from the atmosphere.

At the same time, spiking energy demand – driven largely by the growing needs of data centers, particularly those underpinning artificial intelligence (AI) and blockchain technology, as well as new industrial and manufacturing facilities – also means we need to increase generation capacity rapidly to avoid an energy security crisis. This becomes more difficult to achieve through intermittent sources like wind and solar alone, which can’t be turned up and down when the grid is strained, opening an opportunity for solutions that can provide renewable, baseload power while permanently removing carbon from the atmosphere to fill this vital need.

Bioenergy with CCS – a critical technology for decarbonization

Bioenergy with carbon capture and storage (BECCS) is a carbon removal technology that uses sustainably sourced biomass to generate renewable energy while permanently sequestering the carbon underground. Because BECCS is one of the only renewable sources that can generate baseload power around the clock, seven days a week, it can serve as the backbone of renewable power grids for when the sun isn’t shining, or the wind isn’t blowing – a role fossil fuels often fill today.

At the same time, BECCS captures post-combustion carbon at the stack and pipelines it into geologic storage, permanently securing it underground. These high-quality carbon removals are more straightforward to measure in comparison with other solutions like nature-based removals, making it much simpler to quantify the overall impact achieved.

Compared to other carbon capture technologies, BECCS also has more diversified revenue streams – including renewable power generation, government incentives for carbon storage, and the sale of carbon dioxide removals (CDR) credits to offset emissions for other companies and industries. Because of this diversification, BECCS not only provides a clearer path to profitability but also offers a high-quality CDR at a much lower price point than alternatives like direct air capture (DAC). This results in a more sustainable and scalable path to adoption.

Due to these advantages, BECCS is positioned to do much of the heavy lifting regarding carbon removals, but it doesn’t replace the need for additional carbon capture and renewable energy solutions. Technologies like DAC, while costlier to operate today, will play an important role in helping to reverse legacy emissions as well; in fact, BECCS could even power DAC facilities to ensure they’re running on renewable energy. The same is true for renewable power technologies – we need far more wind and solar capacity in addition to BECCS.

Pioneering BECCS in the US and UK

Drax believes that BECCS will be integral to decarbonizing the power sector and hard-to-abate industries. To this end, Drax has launched a new independent business unit this year that is focused on becoming the global leader in large-scale carbon removals. This business unit will oversee the development and construction of Drax’s new-build BECCS plants in the US and internationally, and it will work with a coalition of strategic partners to focus on an ambitious goal of removing at least 6 Mt of CO2 per year from the atmosphere.

Previously, Drax successfully completed two BECCS pilots at Drax Power Station, the UK’s largest power station that contributes approximately 4 percent of Britain’s generation output and 11 percent of its renewables. The Drax team is now working to outfit Drax Power Station with BECCS technology that will remove an estimated 8 Mtpa of carbon while generating 10 TWh of power. This is slated to be the first carbon-negative power station in the world and is key to achieving Drax’s goal of becoming a carbon-negative company.
Drax is also pursuing an initial target in the U.S. to have two BECCS plants built and operating by the 2030s. These will be the first large-scale, biomass-fueled power stations in North America, generating an estimated total of 4 Twh of power while sequestering approximately 6 Mt of CO2 per year.

BECCS is an essential technology to help achieve global decarbonization targets. While it doesn’t replace the need for additional carbon capture and renewable power generation alternatives, its unique advantages can help reverse carbon pollution from the past while meeting the energy demands of the future.

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3 Ways BECCS Will Provide Energy Security and Reduce Carbon Emissions https://www.drax.com/us/opinion/3-ways-beccs-will-provide-energy-security-and-reduce-carbon-emissions/ https://www.drax.com/us/opinion/3-ways-beccs-will-provide-energy-security-and-reduce-carbon-emissions/#respond Wed, 01 May 2024 16:10:54 +0000 https://www.drax.com/us/?p=16576 By Laurie Fitzmaurice, President of Global BECCS  When it comes to energy, the United States is caught between a proverbial rock and hard place. Projected demand for power has never been higher, with the proliferation of modern technology like AI and datacenters expected to drive consumption up exponentially. At the same time, deep emissions reductions... Read more »

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By Laurie Fitzmaurice, President of Global BECCS 

When it comes to energy, the United States is caught between a proverbial rock and hard place. Projected demand for power has never been higher, with the proliferation of modern technology like AI and datacenters expected to drive consumption up exponentially. At the same time, deep emissions reductions are needed immediately to curb the impact of climate change, and experts have warned that permanent carbon removals at scale are essential to limit global warming to theC tipping point for our planet.  

In February this year, I joined Drax Group as President of our new Houston-headquartered, independently operated business unit focused on delivering carbon dioxide removals and becoming a global leader in this emerging field. The new business unit will scale Drax’s ability to deliver high-quality carbon removals, which in turn offers organizations an opportunity to reduce their own carbon footprint.  

For example, in the past month Drax announced carbon removals deals with Karbon-X and C-Zero, organizations that have committed to purchasing 25,000 and 2,000 tonnes of carbon credits respectively from our planned carbon removal facilities. These companies will sell the credits on the voluntary carbon market, enabling individuals and organizations to achieve their own emissions reduction targets.   

Buyers rightfully seek confidence in their purchases; they want removals that are not only high quality but also robustly quantified and verified, and this is exactly what we are committed to delivering. Bioenergy with carbon capture and storage (BECCS) is the process of capturing and permanently storing carbon dioxide (CO2) that is generated during the production of electricity from sustainable biomass. The carbon released during this process is captured and permanently stored underground – not only reducing emissions but permanently removing carbon from the atmosphere. 

As President of Drax’s new business unit focused on deploying BECCS globally, I want to share three fundamental ways that BECCS will provide energy security while reversing carbon pollution at the same time. 

1. BECCS Provides Dispatchable, Renewable Energy

Unlike other carbon removal technologies, our BECCS facilities will generate secure, reliable energy for millions of homes and businesses while removing carbon dioxide from the atmosphere – uniquely helping to address two of the world’s greatest challenges at the same time.  

This end-to-end process can be delivered within the U.S., providing energy independence and security by delivering renewable power around the clock, seven days a week – and unlike intermittent renewables, BECCS operates even when the sun isn’t shining, and the wind isn’t blowing.  

Energy demands are increasing in the U.S. and around the world, and energy systems are struggling to keep pace. From the voracious energy consumption of AI, data centers, electric vehicles, changing climates, and population movements, states and energy networks are looking at how to keep up with demand, particularly during peak periods of strain. 

This is no small task. Globally, scientists tell us it will require thousands of gigawatts of additional renewable energy capacity while removing hundreds of millions more tonnes of carbon from the atmosphere. 

And the need is now – we can’t wait. It has never been more important to diversify our sources of energy and build a system that is resilient to outside shocks. Energy grid blackouts and calls to conserve energy shouldn’t be the norm. We are at a critical moment in our industry: if we are to reliably meet the future energy needs of our global society, we need more dispatchable energy, and we need it to come from more sustainable sources. 

Drax’s ambition will help achieve just that. 

In fact, the Department of Energy recently released it’s 2023 Billion-Ton Report, which demonstrates that the U.S. could sustainably triple its production of biomass to more than 1 billion tons per year to support a robust bioeconomy. This reaffirms our position that biomass is well-positioned to meaningfully contribute to energy security and grid resilience at scale and serve as the sustainable fuel for BECCS. 

2. BECCS Permanently Removes Carbon from the Atmosphere 

At the same time, scaling up our ability to remove carbon from the atmosphere is crucial for combatting climate change and achieving Paris Agreement goals. Scientists estimate that up to 10 gigatons of CO2 will need to be permanently sequestered each year by 2050 in order to prevent catastrophic warming of our planet. So, while we need to produce more energy than ever before, we also need to capture and permanently lock up an increasing amount of CO2 

New research published by Foresight Transitions shows that BECCS is necessary to achieve ambitious decarbonization scenarios in the U.S., and it’s critical to delivering a zero-carbon power system by 2035. Our indicative plans for our first BECCS site estimate that we can remove 3 million tonnes of CO2 annually from the atmosphere. This is realistic and deliverable – and that is just with our first plant; it’s only the beginning of what we can deliver with BECCS globally. 

Credit for the carbon dioxide removed from the atmosphere from these projects can be purchased by forward thinking businesses looking to offset their emissions. This can be particularly useful for hard-to-abate sectors looking to offset residual emissions and meet net-zero targets.  

The carbon removals industry is estimated to be a $1.2 trillion opportunity by 2050 

The market is currently trading at high prices and small volumes, but as innovation continues, scaling the industry is achievable. Some of the steps needed to scale this industry include:  

  • Stronger buyer incentives 
  • Robust standards 
  • Clear demand signals and policy measures to encourage investment 

Trading carbon removal credits on the voluntary carbon market not only supports decarbonization ambitions but also enables developers, like Drax, to scale up carbon removals – it serves a dual benefit.  

3. BECCS Supports Jobs and Skills

Drax has already delivered over $1 billion in economic impact across the United States, with plans to invest even more. Our investment in the U.S. currently supports thousands of jobs in logging, trucking, railroad and port operations across Louisiana, Mississippi, Alabama, and Arkansas, and our operations in Texas will support additional new jobs. Were also supporting the communities were a part of with our focus on skills, education, and nature as well as jobs – through the creation of the Drax Foundation, giving back directly to our communities and helping to meet local needs.   

BECCS has the opportunity to create thousands more jobs across a number of industries. It’s a cost-effective solution that’s more affordable than other carbon removal technologies while also providing jobs in rural America. And by sourcing sustainable biomass from the areas where our plants will be built, BECCS will support important supply chains. 

BECCS is the only technology with the capability to generate 24/7 power, while removing carbon dioxide and permanently storing it. It can protect and create jobs, support healthy forests, and boost local and state economies. 

I couldn’t be more excited to be in this new role to tackle such vital challenges. Together with my talented colleagues, our partners, and the world’s forward-thinking businesses and governments, we’re going to make the difference the world needs.   

Learn more about our carbon removals journey by visiting www.draxcarbonremovals.com 

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A prosperous future needs energy security and carbon removals – BECCS delivers both https://www.drax.com/us/opinion/a-prosperous-future-needs-energy-security-and-carbon-removals-beccs-delivers-both/ https://www.drax.com/us/opinion/a-prosperous-future-needs-energy-security-and-carbon-removals-beccs-delivers-both/#respond Tue, 02 Apr 2024 13:09:07 +0000 https://www.drax.com/us/?p=16570 Drax CEO, Will Gardiner, outlines how carbon removals technology can support energy security while tackling climate change.

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  • Reaching net zero while delivering economic growth requires both energy security and carbon removals.
  • In the late 2020s, UK demand for energy is set to exceed secure and dispatchable supply by 5GW at peak times – leaving the country dependent on imported and intermittent sources to avoid shortages.
  • To bridge the energy security gap the Government needs to extend the lives of existing assets, including biomass and nuclear plants, and curb peak demand.
  • Drax plans to install Bioenergy with Carbon Capture and Storage (BECCS) at Drax Power Station, if we secure the right support from Government this project will ensure the site continues to keep the lights on for millions of homes and businesses well into the future.
  • BECCS is a unique technology, nothing else generates renewable power while removing carbon from the atmosphere.
  • Bridging support for Drax Power Station from 2027 as a pathway to BECCS will mitigate the energy crunch and reduce dependency on intermittent generation.
  • There is a huge opportunity for carbon removals technology to assist with other industries in decarbonising, and further opportunities to reduce cost by sharing resources.
  • BECCS is only possible if we ensure high standards for carbon removals, and these standards must acknowledge the difference between engineered and natural solutions.
  • We all know that action is needed to tackle the global climate emergency. If we get these changes right, they will ultimately be beneficial to economies and society.

    Industries of all kinds will need to reduce their CO2 emissions. While reducing greenhouse gas (GHG) emissions is vital, it is becoming clear that reductions alone are unlikely to be enough: it will also be necessary to remove GHGs from the atmosphere to limit the global temperature increase to 1.5C. Any residual emissions in hard-to-abate sectors like aviation or agriculture will require carbon removals at scale, in both a combination of nature and technology-based carbon removal solutions.

    This vision of the future doesn’t have to mean low-growth economies or scarce energy supply. Instead, we can build and adapt our energy systems for a sustainable future that enables prosperous economies and thriving societies.

    Today, energy systems are some of the world’s most emission-intensive sectors, though many are rapidly decarbonising. The UK has made excellent progress in delivering this, ahead of many other countries, with around 60% of its power now coming from low-carbon sources.

    The continued evolution of the energy industry is also intrinsically connected to delivering carbon removals at scale.

    The two primary engineered carbon removals technologies are BECCS and Direct Air Capture and Storage (DACS). DACS can remove CO2 from ambient air and then store it underground. To do so, DACS requires a low carbon source of power. BECCS, by contrast, generates power using renewable biomass that absorbs CO2 as it grows. The CO2 is then captured and stored safely and permanently underground.

    Done right, they both remove more CO2 than they emit – delivering carbon removals. But BECCS’ unique capability to deliver carbon removals while generating 24/7 baseload power means it can support energy security while helping to tackle climate change.

    Delivering energy security in a net zero future

    As society electrifies to meet net zero, the demand for power will substantially increase. Meeting these increases will require governments to work with the private sector to deploy a range of technologies. Increasing deployment of renewables like wind and solar around the world will be vital. But these intermittent sources will need complementary technologies like short and long-term energy storage, as well as baseload power generation that can ensure energy systems remain secure and stable.

    BECCS is the only renewable energy and carbon removal technology that offers the full suite of system support services. This includes a reliable, stable source of power integrated with other intermittent renewables, something that will only become more important as energy systems decarbonise.

    One example of the role biomass can play in global energy solutions comes from research we commissioned from Baringa, which finds that peak demand for UK energy will increase by up to 7GW by 2027. The closure of coal, older gas, and nuclear power stations, however, will also remove up to 7GW of secure capacity from the grid. This could be further exacerbated by ongoing costly delays in new power plants such as Hinkley Point C, which is not expected to be completed until 2031. This means the percentage of ‘secure’ capacity needed to cover peak demand in the UK is projected to decrease

    Recent independent analysis by Public First, reaffirms that the UK will hit an energy security “crunch point” in 2028, and the UK’s demand for power is set to exceed secure dispatchable and baseload capacity by 7.5GW. This shortfall would leave the UK more dependent on intermittent domestic and international generation.

    Therefore, existing assets like Drax Power Station will be even more critical to energy security. Bridging support for Drax Power Station from 2027 until BECCS is online will reduce the risk of energy shortages and reduce dependency on overseas sources, supporting energy security and decarbonisation through the crunch.

    The Government’s Powering Up Britain strategy aims to set the course for delivering the UK’s net zero and energy security ambitions. A key part of this programme is carbon removals and the development and deployment of large-scale Power BECCS by 2030.

    We’ve shown at our North Yorkshire site how BECCS is ready to work within the current energy ecosystem. It’s an opportunity to utilise existing infrastructure, convert coal power stations and adapt to an energy secure, net zero future.

    In January 2024, the Secretary of State for Energy Security and Net Zero, Claire Coutinho, approved the Development Consent Order (DCO) for our plans to convert two biomass units at Drax Power Station to BECCS.

    Providing the coming months see real progress in our discussions and there is swift decision making, we stand ready to invest billions to develop what will become world’s largest engineered carbon removals project at Drax Power Station.

    Our plans for Power BECCS in North Yorkshire would enable us to remove up to eight million tonnes of CO2 from the atmosphere per year, while still generating secure, dispatchable, renewable power for millions of homes and businesses.

    Without BECCS at Drax, the UK’s target of five million tonnes of carbon removals by 2030 would be difficult to achieve. The pioneering project would build on Yorkshire’s proud industrial heritage, as well as potentially delivering more than 10,000 jobs at the height of construction and position the county and the UK as leaders in the race to create and scale a technology required to capture greenhouse gas emissions.

    The DCO approval is another milestone in the development of our BECCS plans and demonstrates both the continued role that Drax Power Station has in delivering UK energy security and the critical role it could have in delivering large-scale carbon dioxide removals to meet net zero targets.

    It offers a model for energy security globally. While ensuring the phase-out of fossil fuels around the world, biomass offers a renewable, flexible alternative to reduce our dependency on forms of power such as coal. With BECCS, we can go further by transforming existing coal power stations from carbon emitters into carbon removers.

    Decarbonisation across industries

    Carbon dioxide removal technologies, like BECCS and DACS, can neutralise hard-to-abate and residual emissions across whole industrial clusters.

    Furthermore, carbon removal hubs or clusters, with shared decarbonisation goals, technology, and infrastructure, offer locations where BECCS and DACS can help emissions-intensive industries decarbonise. Sharing infrastructure, like pipelines and storage locations can reduce the cost of deploying carbon removals by creating economies of scale.

    Major industries like steel, cement, and chemicals, that employ millions of people around the world may only be viable in a net zero future with connections to carbon removals technologies. BECCS also offers these industries, that depend on energy-intensive processes, an alternative source of power from fossil fuels.

    Baringa’s analysis found that Drax’s proposals for BECCS at Drax Power Station could save the UK up to £15bn in whole economy costs in meeting the country’s net zero goals between 2030 and 2050. It also demonstrates that without BECCS at Drax, meeting carbon reduction targets is more complicated and expensive and carbon savings would be needed in other sectors.

    Research by the Intergovernmental Panel on Climate Change, the world’s leading authority on climate science, also states that to tackle climate change, up to 9.5 billion tonnes of carbon removals via BECCS will be required globally per year by 2050. So as the world enters the pivotal decades to act on the climate crisis, governments around the world must take action. One idea of a decarbonisation hub is included in the U.S. Inflation Reduction Act, which commits $3.5 billion to developing four regional Direct Air Capture Hubs.

    The Inflation Reduction Act’s total $369 billion funding package focused on energy security and climate change contains a host of potential opportunities for BECCS deployment across renewable power generation, sustainable aviation fuel and hydrogen.

    These include a $40 billion loan fund for projects which utilise innovative technology to reduce, avoid or sequester carbon, and $140 million to create a competitive purchasing programme for carbon removals.

    Furthermore, the act increases the availability of the 45Q tax credit for carbon capture and storage projects, increasing their value from $50 a tonne of carbon removals to $85 per tonne. These are all promising steps to creating the market and environment needed to deploy technologies like BECCS and DACS.

    We recently announced that we’re launching a new business focused on becoming the global leader in large-scale carbon removals, which will oversee the development and construction of our new-build BECCS plants in the US. These projects, through the investment they attract and the jobs they generate, can become key economic drivers in a given region.

    The global opportunity for BECCS is clear. The market for carbon removals is growing. And we want to ensure BECCS offers a high-integrity form of carbon removals that delivers permanent carbon sequestration.

    Ensuring high quality carbon markets

    As pioneers in the field, we’re setting the bar for carbon removal standards, ensuring quality is intrinsic to Drax’s offering. To help achieve this, we’ve partnered with Stockholm Exergi and EcoEngineers to develop a world-leading methodology to ensure the integrity of BECCS carbon removals. Our paper, ‘Corporate climate claims: The case for including permanent carbon removals’ also looks at resetting the standard on corporate claims for carbon removals. Tackling climate change while advancing sustainability is at the heart of our purpose and we’re committed to supporting organisations – especially those with hard-to-abate emissions – work towards decarbonising and reaching climate targets.

    From the biomass used to fuel BECCS, to capture and transport processes, it’s imperative the carbon removed is always greater than any carbon emitted throughout the process.

    Building from a sustainable base, with a high set of standards can make BECCS a transformational technology in powering the future and delivering carbon removals. No other technology can do both. BECCS can generate renewable power. BECCS can remove emissions. BECCS can deliver a prosperous, net zero future for the world.

    To find out more about BECCS and how carbon removals can support your company’s decarbonisation journey, visit draxcarbonremovals.com

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    [POWER article] UK’s Drax eyes U.S. for bioenergy CCS expansion drive https://www.drax.com/us/opinion/power-article-uks-drax-eyes-u-s-for-bioenergy-ccs-expansion-drive/ https://www.drax.com/us/opinion/power-article-uks-drax-eyes-u-s-for-bioenergy-ccs-expansion-drive/#respond Thu, 14 Mar 2024 09:15:16 +0000 https://www.drax.com/us/?p=16554 This article from POWER details Drax's transition from coal, to biomass, to BECCS and its plans for expansion in the U.S.

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    The 2.6-GW Drax Power Station in northeastern England—once Western Europe’s largest coal-fired power plant—is poised to pioneer bioenergy with carbon capture and storage (BECCS), a negative emissions technology. In a move to establish a stronghold on emerging prospects for BECCS, Drax Group has now set out to launch an independent business unit to develop and build new BECCS plants in the U.S.

    The move is a remarkable step for Drax Group, a company established in 1967. After the discovery of the Selby coalfield—a deep underground resource in North Yorkshire—the UK’s state-owned Central Electricity Generating Board commissioned Drax Power Station, and the plant, comprising four 660-MW units equipped with Babcock and Wilcox subcritical boilers, was completed in 1975. The Drax plant doubled its capacity in 1986 to 4 GW, and in 1988, it pioneered flue gas desulphurization (FGD) in the UK. After a series of ownership shuffles following the privatization of the UK power sector in the 1990s, Drax Group was founded in 2005.

    Read the full story on POWER

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    Helping Mississippi, Arkansas communities recover from tornadoes https://www.drax.com/us/sustainable-business/helping-mississippi-arkansas-communities-recover-from-tornadoes/ https://www.drax.com/us/sustainable-business/helping-mississippi-arkansas-communities-recover-from-tornadoes/#respond Fri, 14 Apr 2023 13:23:12 +0000 https://www.drax.com/us/?p=16328 Drax provided donations from its Communities in Crisis Fund to the United Way in Arkansas and Mississippi following the tornados in March that caused widespread destruction and loss of life within the states we operate.

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    Mississippi and Arkansas were devastated by a recent rash of tornadoes that ripped across the Southeastern U.S. in March.

    As part of the Communities in Crisis Fund, Drax donated $25,000 to the United Way of Southeast Louisiana and $25,000 to the Heart of Arkansas United Way to support tornado damage relief efforts. Funds will be used for immediate relief efforts and long-term rebuilding and recovery in affected communities near Rolling Fork, Mississippi and Little Rock, Arkansas.

    “The establishment of our Communities in Crisis Fund is an example of how we are strengthening our approach to supporting our communities, which includes an enhanced approach to philanthropic giving,” said Shona King, Group Head of Community for Drax.

    The Crisis Fund provides donations to reputable relief organizations working on the ground or organizations that have been established to run emergency appeals in the immediate aftermath of disasters such as hurricanes, flooding, tornadoes and wildfires.

    “United Way of Southeast Louisiana and our partners at WDSU-TV are grateful to Drax for supporting efforts to help our neighbors in Mississippi,” said Michael Williamson, President and CEO of United Way of Southeast Louisiana. “We know all too well the devastating effects of tornadoes on communities, and thanks to Drax’s generous donation, we can grant critical funds to our fellow United Ways to help their families rebuild and recover.”

    Drax is committed to being a good neighbor, helping those in immediate need and playing a positive role in their communities.

    “Drax’s generous gift will allow Heart of Arkansas United Way to provide victims of the March 31 tornadoes the support they need through recovery and rebuilding work that will be ahead for many months to come,” said Lynn Holzman Pharr, President of the Heart of Arkansas United Way President. “Disaster recovery is a long-term process – a marathon, not a sprint. Our community is thankful for the immediate response efforts of many who are helping to evaluate the scope and scale of the impact, so that we may begin planning for the support individuals and families will need in the long term.”

    Drax’s philanthropic efforts focus on the well-being of the states especially as the company grows and wants to give back to local communities.

    “Our employees live in Arkansas and Mississippi and know, or are related to, people impacted by the tornado damage,” said King. “They are part of our extended Drax family.”

    To learn more about Drax’s approach to community engagement and corporate giving, visit our Community site, which contains more information about our Communities in Crisis Fund and the Drax Foundation.

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    Working towards carbon negative: Reducing supply chain emissions https://www.drax.com/us/sustainable-bioenergy/working-towards-carbon-negative-reducing-supply-chain-emissions/ https://www.drax.com/us/sustainable-bioenergy/working-towards-carbon-negative-reducing-supply-chain-emissions/#respond Fri, 17 Mar 2023 10:16:27 +0000 https://www.drax.com/us/?p=16441 Achieving Drax’s ambitious decarbonisation goals means continuing to find innovative ways to reduce emissions across our operations

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    Key takeaways:
    • Drax’s ambition of becoming a carbon negative company by 2030 means we’re always working to reduce our supply chain emissions further.
    • We’re partnering with different organisations to explore innovative solutions to lowering shipping emissions.
    • Through our experience of carbon capture and storage, we can deploy the technology to decarbonise operations at our pellet mills.
    • Using rail wagons specifically designed to transport biomass wood pellets helps us reduce transport on land emissions.
    • By developing a new BECCS power station in the U.S., we can help decarbonise electricity systems while removing emissions from the atmosphere and tackling climate change.

    At Drax, we have ambitious plans to not only help countries around the world replace fossil fuels with renewable biomass, but to become a carbon negative company by 2030.

    For the world to achieve its net zero targets and meet the Paris Agreement goals of keeping global temperature rises below 1.5°C, it’s essential to remove more carbon from the atmosphere than is produced.

    Drax is leading in this effort through pioneering bioenergy with carbon capture and storage (BECCS) technology. BECCS is the process of generating renewable power using sustainably sourced biomass while capturing and permanently storing CO2.

    Developing BECCS at scale and achieving our own carbon negative objective means working to decarbonise the technology’s entire supply chain. It’s a responsibility we’ve been committed to for decades, even before the Drax Power Station was converted to run on sustainable biomass, and we continue to look for new innovations.

    Here are three of the ways we’re working to optimise our supply chains to make them as energy efficient and low-carbon as possible:

    1. Shipping emissions: Harnessing the wind

    Around 90% of the world’s goods are transported by sea, including the wood pellets produced at our pellet mills and used to generate renewable power at Drax Power Station in the U.K. And while shipping has a lower carbon footprint than road or air transport, the sector still accounts for around 3%, or 1 billion tonnes of global greenhouse gas (GHG) emissions. Initiatives to reduce the emissions associated with shipping are an important part of our efforts to decarbonise our supply chain and become carbon negative.

    In 2022, we signed a memorandum of understanding with Japanese shipping company MOL Drybulk. Together, we’re exploring installing MOL’s proven Wind Challenger hard sail technology on vessels transporting wood pellets on routes such as British Columbia to biomass customers in Japan. Wind Challenger, which reduces fuel consumption and emissions by harnessing wind power through modern sails, could be ready to be fitted onto newly built vessels for Drax from 2025.

    The Environmentally Friendly Bulk Carrier “EFBC” project’s use of new and more efficient wind-power could contribute to reducing emissions associated with shipping biomass by around 20%. At a later stage, the project could also incorporate the use of other low-carbon technologies, as well as lower-emission fuels such as liquefied natural gas, ammonia, and synthetic fuels.

    We previously partnered with the Smart Green Shipping Alliance, dry bulk cargo transporter Ultrabulk, and Humphreys Yacht Design for a feasibility study that looked at reducing shipping emissions. The study examined the potential to retrofit an innovative sail solution known as FastRig onto Ultrabulk ships importing biomass into the UK. FastRigs, made from 100% recycled and recyclable material, are designed to considerably reduce GHG emissions and the use of fuel. The feasibility study found that the FastRig solution could help lower fuel use and GHG emissions on one of our export routes – from Baton Rouge, Louisiana, to Liverpool in the UK – by at least 20%.

    2. Reducing emissions through carbon capture and storage

    Biomass pellet plants are a key part of Drax’s supply chain. By producing renewable, sustainable biomass feedstock we can help countries around the world to replace fossil fuels.

    Our pellet mills in Canada and the U.S. South use a mix of fibre sources – all of which are unsuitable for lumber or other solid wood products. Globally, in the first half of 2022, almost 70% of the fibre for our biomass came from sawmill residues, like sawdust and wood chips.

    Fibre for biomass also comes from low-grade wood that’s rejected by the lumber industry, slash left over from lumber industry harvests, and trees removed in forest management processes, like thinning and wildfire mitigation.

    The pelletisation process uses power from local grids – wedding us to regional power sources. In areas like the U.S. where 61% of electricity is still generated from fossil fuels, this adds to our Scope 2 emissions.

    However, our pioneering development of carbon capture technology offers the potential to decarbonise emissions connected to pelletisation. It’s one of the ways that the experience and technology we put into action at a new U.S. BECCS plant can decarbonise other facilities, whole industrial clusters, and our own supply chains.

    3. Rail: The low-carbon road option

    For in-country transportation, Drax utilises rail freight as much as possible, as rail offers the capacity we need as well as having a lower carbon footprint than road transport. In the UK, we own 225 rail wagons, specifically designed to transport biomass wood pellets and will be taking delivery of 30 more in 2023. The bespoke wagons carry a greater volume of compressed wood pellets than traditional wagons are capable of, delivering around 20,000 tonnes of renewable biomass to Drax Power Station every day.

    Train carrying sustainably sourced compressed wood pellets arriving at Drax Power Station in North Yorkshire

    Train carrying sustainably sourced compressed wood pellets arriving at Drax Power Station in North Yorkshire [click to view/download]

    Optimising the volume of biomass on each train allow us to run fewer trains to the power station, keeping emissions minimal. Using rail rather than road transport is estimated to save around 270,000 truck journeys and more than 32,000 tonnes of CO2 a year.

    In 2020 a new rail link was opened to connect our LaSalle BioEnergy biomass pellet plant in Louisiana to the regional rail network, enabling the delivery of around 7,000 tonnes of biomass per week to the Port of Greater Baton Rouge. The rail link replaced the 27 tonnes that was previously transported by each individual truck.

    Helping countries around the world achieve net zero and working towards becoming a carbon negative company is only possible if we continue our practice of examining our supply chain and developing new innovative ways to reduce emissions even further.

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