Drax has announced huge plans for bioenergy with carbon capture and storage Stateside as negotiations continue over its UK plant.
The power station sits at the start of ambitious pan-Humber proposals for the emission abatement technology, taking in more electricity generation in the region as well as steel and hydrogen production.
It missed out on forerunner status in March’s government announcement for what would be a £3 billion investment. Now in a Capital Market Day announcement, the global scale of its proposals have been made clear.
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Two sites have been selected in the US South, with nine further sites being evaluated for both greenfield and brownfield development. Texas is also being primed for a global headquarters for the deployment.
Drax Group chief executive Will Gardiner said: “The world’s leading climate scientists at the UN’s IPCC are clear – the planet cannot solve the climate crisis without the combination of reliable, renewable electricity and carbon removal technologies.
“Drax is a growing and sustainable, international business providing flexible, renewable energy and carbon removals solutions, via BECCS, which put us at the heart of global efforts to deliver net zero and energy security.
“Our plans to invest billions in critical renewable energy and carbon removal technologies will help to tackle the climate crisis and could create thousands of jobs whilst generating secure, renewable power. This investment is underpinned by our strong operational performance.”
Investment has been put on hold in Britain following the spring setback. It has, however, restated its target to capture eight million tonnes at the plant by 2030. In total 14 million tonnes is being eyed by 2030, with 20 million tonnes in a further pipeline.
The City has also been told proposals equate to a £7 billion portfolio of strategic growth opportunities through to the decade’s end.
That is the target date for Drax - once the largest coal-burner in the UK - to become a carbon negative company. Having made the switch to biomass over the past decade, it is now looking to address the emissions produced from the burning of the renewable feedstock.
Total investment would be in the region of $2 billion per plant in the US, with a target financial investment decision in 2026 and commercial operation by 2030.
It is capitalising on the tax incentives offered by the US Inflation Reduction Act, and to support the development has hired 80 employees across the US and Canada. Texas is seen as providing “access to the highly skilled workforce needed to support the growth of this part of the group”.
CCS could also be added to an existing pellet plant in Louisiana, capturing 100,000 tonnes of CO2 per year from the process, and providing an early demonstration of the technology, while helping to stimulate the "nascent" carbon dioxide removal certificate trading market. The project, which has a capital cost in the region of $150 million, is targeting final investment decision in 2024/25 and commissioning in 2026.
The group is also assessing options for BECCS on existing non-Drax assets and is continuing to screen other regions, including Europe and Australasia.
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