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.
SOURCE Drax Group
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