Drax and Pathway Energy Partner to Advance Sustainable Aviation Fuel Production
Drax Group and Pathway Energy LLC have agreed to support sustainable aviation fuel (SAF) production. Drax will supply Pathway's SAF plant with over 1 million tons of sustainable biomass pellets yearly, as part of the deal. Drax is also exploring an investment in the project, reportedly with a $10 million convertible loan note.
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This partnership highlights how much the demand for SAF is growing, as it can reduce carbon emissions by up to 80% compared to regular jet fuel. According to IATA, SAF will help reduce 65% of the emissions the aviation industry needs to reach net zero by 2050. Once operational, the facility will produce 30 million gallons of carbon-negative SAF each year.
Pathway plans to begin Front End Engineering Design soon, with construction of the $2 billion plant scheduled for early 2026. The facility will begin commercial production of SAF by 2029
Drax and Pathway focus on bioenergy with carbon capture and storage (BECCS), essential for carbon removal and renewable energy. Pathway plans to integrate a BECCS system at Port Arthur, removing 1.9 million tons of CO2 annually and powering the SAF plant.
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Future Collaboration
The agreement also lays the groundwork for Drax to potentially supply biomass to two additional Pathway projects. These future facilities could require up to 2 million tons of sustainable pellets annually through the 2030s.
Will Gardiner, CEO of Drax Group, said, "This landmark deal has the potential to be the biggest third-party supply arrangement Drax’s pellet business has made. Demand for sustainable biomass is accelerating, with international businesses seeking long-term fuel supplies for a range of projects globally – including sustainable aviation fuel and bioenergy with carbon capture and storage."
The Drax-Pathway collaboration advances SAF and BECCS technologies, aiming to reduce aviation emissions and contribute to global climate goals.
