British power generator Drax announced on Tuesday that it may invest up to $12.5 billion in developing biomass plants equipped with carbon capture and storage (BECCS) technology in the United States over the next decade. While Drax currently generates about 6% of Britain’s electricity, the company sees promising opportunities in the U.S. for its BECCS solutions.
Based in Houston, Drax’s new venture, Elimini, is actively assessing more than 20 potential sites for BECCS projects and has a workforce of around 100 employees. Elimini aims to launch its first U.S. project by the end of 2030, which will require an initial investment of $2.5 billion, according to Elimini Executive Chair and Drax Group CEO Will Gardiner. “We are aiming to do more over the next decade,” he stated.
As per news report by Reuters, the BECCS plants will not only capture emissions generated from burning pellets but also benefit from the absorption of greenhouse gases during the growth of the wood, making their overall impact carbon negative. This allows Drax to generate carbon removal credits.
As many companies strive for net-zero emissions, they often need to purchase carbon credits to offset emissions they cannot eliminate. Notable firms, including Microsoft, have expressed readiness to pay a premium for removal credits that effectively reduce carbon in the atmosphere. Drax has already secured 11 carbon removal agreements with eight companies.
However, the biomass power generation approach has faced criticism from environmental groups, who argue that it is not genuinely carbon-neutral and that the production of pellets can lead to deforestation. In response, Drax asserts that it exclusively utilizes wood residues and byproducts from trees primarily harvested for lumber, emphasizing that the demand for wood sourced from sustainable forests can enhance forest growth.
