Drax, which generates almost 6% of Britain’s electricity, said it is still committed to the UK but sees opportunities in the U.S. for its BECCS technology
British power generator Drax could invest up to £9.32 billion ($12.5 billion) developing biomass plants with carbon capture and storage (BECCS) in the US over the next decade, it said on Tuesday.
Drax, which generates almost 6% of Britain’s electricity, said it is still committed to the UK but sees opportunities in the U.S. for its BECCS technology.
Its new Houton-based business, Elimini, is reviewing more than 20 potential sites for BECCS projects and has nearly 100 staff.
Elimini plans to have its first U.S. project up and running by the end of 2030 which will require a £1.86 billion ($2.5 billion) investment, Elimini Executive Chair and Drax Group CEO Will Gardiner told Reuters.
We are aiming to do more over the next decade, he said.
The firm said that, as well as the BECCS plant capturing the emissions it creates by burning pellets, the absorption of greenhouse gases during the growth of the wood means its overall impact will be carbon negative, enabling it to generate carbon removal credits.
Many companies have set net zero emissions targets which require them to purchase carbon credits to compensate for the emissions they are unable to cut themselves.
Some corporate giants like Microsoft have said they are willing to pay a premium for removal credits, which take carbon emissions out of the atmosphere.
Drax said it had already entered 11 carbon removal deals with eight firms.
Green groups have criticised the practice of biomass power generation, arguing that it is not a carbon-neutral method of energy generation and that pellet production can contribute to deforestation.
Drax says it only uses wood residuals or byproducts from trees primarily used for lumber and that demand for wood from sustainable forests can help to increase forest growth.