Drax and Pathway Vitality agree heads of phrases on sustainable biomass deal to provide new US SAF plant
UK-based renewable vitality chief Drax Group (Drax), and Pathway Vitality LLC (Pathway), a carbon unfavourable vitality firm, have reached heads of phrases on a multi-year deal that would see Drax provide over 1 million tonnes of sustainable biomass pellets every year to Pathway’s proposed sustainable aviation gasoline (SAF) plant on the US Gulf Coast.
- Firms attain heads of phrases for the availability and buy of over 1 million tonnes of sustainable biomass pellets every year for Pathway’s SAF venture in Port Arthur, Texas
- The plant will produce 30 million gallons of carbon unfavourable jet gasoline per 12 months equal to greater than 150 million gallons of carbon-neutral blended SAF
- Settlement might additionally pave the way in which for Drax to grow to be a strategic associate within the venture and provide two further Pathway SAF tasks
UK-based renewable vitality chief Drax Group (Drax), and Pathway Vitality LLC (Pathway), a carbon unfavourable vitality firm, have reached heads of phrases on a multi-year deal that would see Drax provide over 1 million tonnes of sustainable biomass pellets every year to Pathway’s proposed sustainable aviation gasoline (SAF) plant on the US Gulf Coast.
Underneath a separate settlement, Drax might additionally grow to be a strategic associate within the venture, with a possible funding within the type of a convertible mortgage be aware of as much as $10 million. No funding resolution has been taken by Drax at this stage.
The heads of phrases mirror rising international demand for SAF, which normally can cut back carbon emissions by as much as 80% when in comparison with conventional jet fuels. Modelling by the Worldwide Air Transport Affiliation1, expects the worldwide use of SAF to ship 65% of the emissions reductions required for the aviation sector to succeed in internet zero by 2050.
As soon as absolutely operational, the plant shall be able to producing 30 million gallons of carbon-negative SAF yearly, the equal of sufficient gasoline to energy 5,000 carbon-neutral long-haul (10+ hour) flights per 12 months.
Pathway will shortly start Entrance Finish Engineering Design and anticipates that it’s going to start building on the $2 billion plant in early 2026. Following building, business SAF manufacturing is anticipated to begin in 2029.
Each corporations even have a strategic curiosity in bioenergy with carbon seize and storage (BECCS), a carbon removing and renewable energy expertise. Pathway intends to develop a BECCS system on the Port Arthur web site which might take away 1.9 million tonnes of carbon dioxide from the ambiance every year whereas powering the SAF facility and making certain the jet gasoline is carbon unfavourable.
Sooner or later, Drax might additionally probably provide biomass to 2 further Pathway tasks, delivering an extra 2 million tonnes of sustainable pellets per 12 months to the enterprise’ websites by means of the 2030s.
Will Gardiner, Drax Group CEO, mentioned:
This landmark deal has the potential to be the largest third-party provide association Drax’s pellet enterprise has made.
“Demand for sustainable biomass is accelerating, with worldwide companies searching for long-term gasoline provides for a variety of tasks globally – together with sustainable aviation gasoline and bioenergy with carbon seize and storage. Reaching heads of phrases on this take care of Pathway is a crucial step within the vitality transition and for decarbonising the aviation sector by means of sustainable aviation gasoline manufacturing, which Drax is proud to be part of. We additionally share Pathway’s purpose of scaling bioenergy with carbon seize and storage to ship the carbon removals that the world must combat local weather change.”
Steve Roberts, CEO and Founding father of Pathway Vitality, mentioned:
This modern settlement catalyzes our aligned dedication with Drax to decarbonize the aviation business and establishes the strategic alignment with Drax to deploy further tasks leveraging confirmed biomass conversion applied sciences, sustainable biomass feedstock, and carbon seize and sequestration.
“With a worldwide scale provide of CORSIA-compliant biomass materials, we’re well-poised to handle one of many hardest to abate industrial sectors by means of the manufacturing of carbon-negative sustainable aviation fuels.”
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Drax and Pathway Vitality agree heads of phrases on sustainable biomass deal to provide new US SAF plant, supply
