Drax Group launches new US company to advance BECCS

UK-headquartered Drax group has launched a new US-based subsidiary, Elimini, to advance bioenergy with carbon capture and storage (BECCS) in the United States.

The company will be dedicated to permanently removing carbon from the atmosphere while generating renewable power.

Elimini will also sell carbon removals generated at the UK-based Drax Power Station, well known for its pioneering BECCS pilot facility.

The launch, which occurred at Climate Week NYC, included the announcement that Carbon Dioxide Removal (CDR) offtake agreements had already been concluded with Ultrabulk, Holborn Trading, Karbon-X, ClimateTrade, NValue, and two previous MOUs had been converted with C-Zero Markets to offtakes with Elimini.

Furthermore, brokerage agreements have been confirmed with ClimateTrade, ClearBlue Markets and Karbon-X.

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"Carbon removals are desperately needed to reverse the legacy emissions warming our planet – and that industry represents more than a $1 trillion opportunity once it reaches gigaton scale," said Elimini executive chair and Drax Group CEO Will Gardiner. "Elimini will have the focus and agility needed to become a leader in the maturing carbon market, rapidly advancing high-quality carbon removals and renewable energy production at global scale."

According to Elimini, the timing of the launch coincides with an increased focus on and concern for climate change. The company suggests governments should be doing more to support the development of carbon removal technologies, as well as generating awareness of the efficacy of BECCS, as "the only technology" that can support the twin goals of increasing renewable energy and decreasing carbon.

The BECCS project

Full scale development is underway at the first greenfield BECCS project, with Sargent & Lundy as designated engineering partner.

Once fully operational, the 300MW generation project will produce 2TWh of renewable energy while capturing 3Mt of CO2 annually.

Elimini has confirmed agreements with biomass supply partners Manulife Investment Management and Molpus Woodlands.

Also of interest: Drax and Mitsubishi partner on bioenergy and carbon capture project

And to boost the sustainability of its operations, the company has also committed to the Forest Landowners Assistance Program. The programme is aimed at assisting local landowners to manage their forests and provide feedstocks for BECCS facilities that will meet the required sustainability standards.

"Elimini is entering the market at a critical time for our planet and the global economy, when unprecedented demand for power threatens to extend the world's dependence on coal and other fossil fuels," said Elimini president Laurie Fitzmaurice. "By advancing BECCS and other carbon removal technologies in the United States and beyond, we will provide organisations and governments with realistic alternatives to power their communities and businesses while staying on track to achieve their climate commitments."

Learn more about Drax's coal-to-BECCS journey in the UK in this episode of the Energy Transitions podcast with Ann Burton, Head of Global BECCS deployment at Drax.