UK-based renewable energy company Drax and Pathway Energy, a carbon-negative energy firm, have agreed on a multi-year deal for the supply of 1 million tonnes of sustainable biomass pellets annually. These pellets will fuel Pathway's proposed $2 billion sustainable aviation fuel (SAF) plant on the US Gulf Coast, set to produce 30 million gallons of SAF per year once operational in 2029.

The SAF plant, capable of supporting 5,000 carbon-neutral long-haul flights annually, aligns with the aviation sector's push for net-zero emissions by 2050. Drax may also invest up to $10 million in the project through a convertible loan note and potentially supply biomass to two future Pathway projects, delivering an additional 2 million tonnes of pellets per year through the 2030s.

Pathway plans to integrate Bioenergy with Carbon Capture and Storage (BECCS) technology at the site, capable of removing 1.9 million tonnes of CO₂ annually while powering the SAF facility. Both companies see this as a step toward scaling carbon removal technologies globally.

Will Gardiner, CEO of Drax, highlighted the significance of the deal, calling it a milestone in decarbonizing aviation and advancing the energy transition. However, the announcement comes amidst controversy surrounding Drax's sourcing practices, with reports of over 11,000 environmental regulation violations tied to its US wood pellet facilities.

Photo Credit: drax.com