Drax Group | US Southeast BECCS Plants
USA
Greenfield
Overview
Status
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Greenfield
Region
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North America
Geography
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USA
State
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Equity Owner
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Drax Group
Proponent
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Drax Group
Output
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Biofuels
Carbon capture and storage (CCS)
Type of electricty
-
Capacity
-
Financing
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Technology
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Technical Advisors
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Advisors
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Project Contact
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Arabella Freeman, Senior Vice President of Biomass Strategy at Drax
Lawyers
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Project Cost
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$2bn per plant
Offtaker
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Commercial Operations Date
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2030
Decommission Date
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FID
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December, 2026
Description
Drax Energy’s development of two bioenergy plants with CCS in the Southeast US.
As it builds the two plants, Drax is evaluating nine additional sites in North America.
The plans are for a new-build BECCS power unit capable of producing 2 TWh of renewable electricity from sustainable biomass and capturing 3 Mt of carbon per year.
The two sites combined could enable the capture of 6 Mt of carbon per year by 2030.
Total investment would be in the region of $2bn per plant with a target FID in 2026 and commercial operation by 2030.
The commercial model for US BECCS includes Power Purchase Agreements, long-term CDR offtake agreements and a direct pay tax incentive under the Inflation Reduction Act of $85/tonne.
In early 2024, Drax Group formed a partnership with Molpus Woodlands Group, which provides Drax with an option to purchase sustainably sourced woody biomass to fuel its BECCS operations.