Drax will invest up to $12 billion in US biofuel power plants

Drax, a British power generator, said that it could invest up $12.5 billion in developing biomass plants with Carbon Capture and Storage (BECCS), in the United States within the next decade.

Drax, the company that generates around 6 percent of Britain's electric power, has said it will remain committed to the UK, but also sees potential in the U.S. with its BECCS Technology.

Elimini, a new Houton business, has 100 employees and is currently reviewing over 20 sites as potential BECCS project locations.

Will Gardiner, CEO of Drax Group and Elimini Executive Chairman, said that Elimini plans to launch its first U.S. Project by the end 2030. This will require an investment of $2.5 billion.

He said, "We aim to do more in the next decade."

The company stated that the BECCS plant will capture the emissions created by burning the pellets. However, it also absorbs greenhouse gases as wood grows, which means the overall impact of the BECCS system is carbon-negative, allowing it to generate credits for carbon removal.

Many companies have net zero emission targets that require them to buy carbon credits in order to compensate for emissions they cannot reduce themselves.

Microsoft, for example, has said that it is willing to pay more money for credits which remove carbon emissions from the atmosphere.

Drax has already signed 11 deals for carbon removal with eight companies.

Green groups have criticized the practice of biomass energy generation. They argue that it's not a carbon neutral method of energy production and that pellets can contribute to deforestation.

Drax claims that it uses only wood by-products and wood residuals from trees that are primarily used to make lumber. It also says the demand for wood from sustainable forest can increase forest growth. ($1 = 0.7473 lbs) (Reporting by Susanna Twidale Editing Christina Fincher).

(source: Reuters)