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.

Also read: UK government grants Drax approval for carbon capture project

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.

Also read: Emirates joins Solent Cluster to advance sustainable aviation fuel production

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.

The United Kingdom’s first large scale carbon capture projects have received the green light. BP, along with Equinor and Total reaching a Final Investment Decision (FID) for the two projects.

Known as The Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power), the two projects will proceed to the execution phase. The green signal comes after selecting nine contractors in March 2024.

Also read: CarbonQuest and Carbfix Join Forces to Accelerate Carbon Capture and Storage in North America

Execution Phase Details

Construction for the two projects will begin in 2025. Operations for the projects is expected to commence in 2028. NEP will transport and store CO2 from the East Coast Cluster. The offshore pipeline network spanning 145 kilometers will help transport nearly 4 million tonnes of CO2.

NZT Power, a joint venture similar to NEP, will capture two million tonnes of CO2 annually. With a capacity of 860 megawatts, NZT Power might generate over 3,000 construction jobs and 1,000 operational positions.

Also read: Nuada and Carbfix Partner to Offer Innovative Carbon Capture and Storage Solutions

Support for Transition

BP’s senior vice president of hydrogen and CCS, Felipe Arbelaez, emphasized the collaboration between public and private sectors to deliver low carbon energy projects. He stressed these projects’ importance and value for the region, partners, and customers.

Energy Secretary Ed Miliband lauded the announcement. He referred to it as a new era for clean energy in Britain. He highlighted that the projects would enhance multiple aspects. The aspects cover energy security and job creation along with supporting the UK’s aim of becoming a clean energy superpower

UK’s Carbon Capture Goals

The CCS projects are part of the UK government’s broader investment plan involving $28 billion. The plan involves the development of two carbon capture clusters over the next 25 years. The East Coast Cluster is the first, with HyNet Liverpool Bay expected to follow soon. The UK aims to store nearly 20 to 30 million tonnes of CO2 annually until the end of the decade.