British energy giant Drax has announced plans to invest up to $12.5 billion in developing biomass power plants with carbon capture and storage (BECCS) in the United States over the next decade.Drax, which currently supplies approximately 6% of Britain’s electricity, sees significant potential for its BECCS technology in the US market. Its newly formed US-based subsidiary, Elimini, is currently evaluating over 20 potential project sites and has already assembled a team of around 100 employees. According to Drax CEO Will Gardiner, the company aims to have its first US BECCS project operational by the end of 2030, with an estimated investment of $2.5 billion. Gardiner emphasized the company’s broader ambitions for the US market, stating,”We are aiming to do more over the next decade.”Drax’s BECCS technology is designed to capture and store carbon emissions produced during the burning of biomass pellets. Additionally, the company claims that the wood used in its pellets is sourced from sustainable forests, resulting in a net-negative carbon impact. Relevant: DNV Greenlights New Drax Methodology For BECCS Carbon RemovalsThis means that Drax can generate carbon removal credits, which are highly sought after by corporations seeking to offset their own carbon emissions.Several major companies, including Microsoft, have expressed a willingness to pay a premium for carbon removal credits. Drax has already secured 11 such deals with eight companies.While biomass power generation has faced criticism from environmental groups due to concerns about deforestation and its carbon neutrality, Drax maintains that its operations are sustainable. The company asserts that it only uses wood residuals and byproducts from trees primarily used for lumber, and that increased demand for wood from sustainable forests can actually promote forest growth. Vasil Velev, “Congress Weighs New Commission to Advance Bioenergy With Carbon Capture,” Carbon Herald, October 1, 2025. Available at: https://carbonherald.com/congress-weighs-new-commission-to-advance-bioenergy-with-carbon-capture/
