Drax announces carbon removals deal with C-Zero
May 24, 2023
Drax has agreed a memorandum of understanding (MOU) with C-Zero Markets in relation to the sale of carbon dioxide removal credits from Drax’s first US BECCS facility. Under the terms of the MOU, Drax and C-Zero will work together with a view to C-Zero acquiring 2,000 tonnes of CDRs for $300 USD per tonne.
Carbon dioxide removals (CDRs) are used by organisations to balance their hard-to-abate carbon emissions, achieve a net zero and, in some cases, a carbon negative status. Longer lasting and lower risk carbon credits, such as the types generated by carbon removals technologies, are increasing in demand as more organisations look to hit their decarbonization targets.
Marc Bradbrook, director of business development of Drax said, “Drax aims to be a global leader in BECCS – delivering renewable energy and carbon removals, while becoming a major player in this potentially trillion-dollar market.”
“While the CDR market is still in early stages, the clear demand that we are seeing for removals alongside the progressive policies being developed in the US to support BECCS, is enabling the investment needed to spur this vital new sector of the economy.”
“We hope this deal with C-Zero will demonstrate the continued growth of the sector and spur other companies to invest now to support the development of this vital market.”
With the right government engagement, Drax plans to invest billions over the coming years in global carbon removals and renewable energy projects, with the aim of capturing 12Mt a year of carbon removals by 2030 globally and to be a global leader in carbon removal projects.
Mike Ridler, director of C-Zero Markets said, “I’m thrilled that the partnership with Drax will help solve the other half of the climate equation with carbon removal. This will be a crucial development in the market for our clients and us; we are already receiving huge interest.”
“This market will evolve quickly, and being involved from the start is a game changer for us and, more importantly, our clients.”
In 2022, Drax announced a deal with Respira, which could see the largest volume of carbon dioxide removals traded so far, a landmark moment for Drax, the development of a global carbon markets, and the fight against climate change.
Print this page