Drax earmarks US$12.5bn for US BECCS expansion

UK-BASED renewable energy company Drax is expanding into the US with a new bioenergy with carbon capture and storage (BECCS) business, earmarking a potential investment of US$12.5bn.

Elimini is based in Houston, US, and has already entered into agreements with 11 companies to develop CO2 removal projects.

Drax told Reuters that it is still committed to its business in the UK but is exploring opportunities in the US to meet “soaring demand for both 24/7 renewable energy and high-integrity carbon removals”.

The company said in a statement: “Elimini’s purpose is to remove carbon for good. To achieve this, it is convening engineers, environmentalists, communities, investors, and innovators to scale the market for carbon removals.”

UK BECCS technology

Drax is the owner of the Drax Power Station in Selby, North Yorkshire, which produces around 14 TWh of electricity from 7m t/y of compressed wood pellets.

The company has been developing BECCS technology at the power station since 2018, and construction has begun on two BECCS units that will be installed on to two biomass units at the facility by 2027.

Elimini will sell carbon removals generated from Drax Power Station but will operate independently.

First steps

The US business has contracted international energy engineering firm Sargent & Lundy to support the development of its first 300 MW BECCS project in the US, which is expected to produce 2 TWh of energy, while capturing 3m t/y of CO2.

Will Gardiner, the CEO of Drax, said that the project is slated for operation by the end of 2030 and will require US$2.5bn of investment.

He said: “Carbon removals are desperately needed to reverse the legacy emissions warming our planet – and that industry represents more than a US$1trn opportunity once it reaches gigaton scale.”