Drax Group, a UK based renewable energy company, has signed an alliance deal with carbon-negative Pathway Energy LLC. Under this tie up, Drax Group will provide 1 million tonnes of sustainable biomass pellets a year to Pathway Energy’s Sustainable Aviation Fuel (SAF) plant on the US Gulf Coast.
This collaboration looks to decarbonize aviation and help the sector get closer to achieving critical global sustainability objectives.
In addition, as part of the partnership, Drax will also potentially act as a strategic partner in the SAF project. This could include up to $10 million in convertible loan note investment, though any investment decisions remain pending from Drax.
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BECCS Integration at Port Arthur to Ensure Carbon-Negative Fuel
The integration of BECCS technology at the Port Arthur site is a critical component in ensuring that the SAF produced is carbon-negative, an essential factor in the global push to combat climate change. Pathway plans to deploy a BECCS system capable of removing 1.9 million metric tons of CO2 annually, directly offsetting emissions from both the SAF plant and its associated energy production.
According to IATA, with pressure on the aviation sector to reduce its emissions, the International Air Transport Association estimates that SAF is expected to comprise 65% of the cuts required in the sector for it to achieve net-zero emissions by 2050.
Also read: Trump Presidency Poses Challenges for SAF Industry
Proposed Pathway’s SAF Plant Milestone to Sustainable Aviation
This proposed SAF plant will annually produce 30 million gallons of SAF-a volume considered sufficient to power about 5,000 long-haul flights. The construction will start early 2026, and by early 2026, the path is targeting completion of Front End Engineering Design phase.
It will begin the production of commercial SAF in 2029, a very significant time frame for reducing aviation carbon emissions. It may alter how to achieve sustainability through transition in carbon-negative fuels from traditional fuels.
Outlook of Biomass Supply and Global Scaling
Going forward, Drax could increase its participation in Pathway’s renewable energy efforts. The firms are discussing how Drax might sell biomass to two other Pathway projects, thereby potentially doubling biomass pellet sales from 2 million tons a year by the 2030s.
This increased interest reflects the rising worldwide need for sustainable biomass sources as both the energy and aviation sectors look to reduce emissions and meet stringent climate goals.
Reflection on the Agreement’s Potential
Will Gardiner, CEO of Drax Group, said that this landmark agreement could be the largest third-party biomass supply arrangement in Drax’s history. He highligted the accelerating demand for sustainable biomass, especially for large-scale projects like SAF and BECCS, which are integral to achieving global carbon reduction targets.
As industries worldwide look to decarbonize, partnerships like this are key to adopting cleaner, renewable energy sources.
