The agreement – the latest indicator of
growing demand for BECCS-derived carbon credits –
converts an existing memorandum of understanding (MoU) into a
firm offtake deal
HOUSTON, April 18,
2024 /PRNewswire/ -- Carbon removals and renewable energy company
Drax Group today announced a carbon removals deal with C-Zero
Markets (C-Zero), an environmental consultancy. The agreement is
indicative of the maturing carbon market's growing appetite for
high-quality carbon removals and represents another concrete step
toward Drax delivering bioenergy with carbon capture and storage
(BECCS) in the United States.
C-Zero will purchase carbon dioxide removals (CDR) credits from
Drax representing 2,000 metric tons of permanently stored carbon
under the terms of the agreement. The deal, which converts a
previous MoU into a firm offtake agreement, is connected to Drax's
future deployment of carbon negative BECCS in the U.S.
"Organizations like C-Zero and the clients it supports are
looking to permanent, engineered carbon removals that are
high-integrity to ensure their climate commitments are achieved,"
said Laurie Fitzmaurice,
President, Carbon Removals at Drax. "As those deadlines
approach, experts predict demand will soar for CDRs that are
credible, quantifiable, and auditable – like those provided through
BECCS by Drax – making now the smartest time to invest."
This latest agreement between Drax and C-Zero is a clear
indicator that demand for BECCS-derived carbon removals continues
to increase. Today's announcement comes just weeks after a firm
offtake deal with Karbon-X, and Drax inked MoUs with Respira and
C-Zero prior to that.
Drax also launched an independently operated business
unit headquartered in Houston,
Texas, at the beginning of the year with the intent of
becoming the global leader in large-scale carbon removals. This
business unit will oversee the development and construction of
Drax's new-build BECCS plants in the US and internationally, and it
will work with a coalition of strategic partners to focus on an
ambitious goal of removing at least 6 Mt of CO2 per year
from the atmosphere.
BECCS is a carbon removal technology that uses sustainably
sourced biomass to generate renewable energy while permanently
sequestering the carbon underground. According to a recent report
from Foresight Transitions, BECCS is necessary to help the United States achieve its ambitious
decarbonization targets, deliver a zero-carbon power system by
2035, and become net-negative by 2050.
"Drax is one of the leading players in the BECCS space, and
we're thrilled to be partnering with them to help solve the other
half of the climate equation with carbon removal," said
Mike Ridler, CEO at C-Zero
Markets. "It has been great to work with them on process,
compliance, and sustainability as this is fundamental to us as a
business and to the clients we are supporting."
The market for engineered carbon removals is maturing rapidly as
organizations across the planet seek out solutions that can help
them keep their climate commitments on track reliably. Because they
are quantifiable and auditable – providing clearer value for the
investment – BECCS-derived CDRs have quickly become a fundamental
part of this voluntary carbon market.
To learn more about how Drax is helping organizations achieve
their sustainability goals through high-quality carbon removals,
visit www.draxcarbonremovals.com
About Drax
Drax Group's purpose is to enable a
zero carbon, lower cost energy future and in 2019 announced a
world-leading ambition to be carbon negative by 2030, using
bioenergy with carbon capture and storage
(BECCS) technology.
Drax's approximately 3,000 employees operate across three
principal areas of activity – electricity generation, electricity
sales to business customers and compressed wood pellet production
and supply to third parties. For more information, visit
www.drax.com.
About C-Zero Markets
C-Zero Markets provides
environmental consultation, supporting companies and organizations
with renewable energy solutions, emissions reduction and achieving
carbon, compliance, and net zero targets. Their goal is to help
organizations achieve the highest emission reduction standards
possible. To learn more, visit
www.czero.energy.
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SOURCE Drax Group