The race is on to revolutionize the fight against the climate crisis. And for Drax, carbon removals are seen as a critical tool.
Renewable energy company Drax is positioning itself as a global leader in carbon removals using bioenergy with carbon capture and storage (BECCS). Currently the UK’s largest renewable energy provider by output, Drax was one of the first companies in the world to set the lofty goal of becoming carbon negative removing more emissions from the atmosphere than it creates by 2030. Over the past decade Drax has worked toward this goal, while supporting energy security in the U.K., by converting its coal generation units in Yorkshire to renewable biomass made from sustainably sourced wood pellets. Now, Drax is focused on the development of its global BECCS projects.
“BECCS is unique because it delivers reliable renewable power essential for energy security as well as carbon removals, which the world needs to reach net zero. No other readily available technology does both,” says Will Gardiner, Drax’s CEO.
Drax has plans to deliver 12 million tons of carbon dioxide removals each year by 2030. Subject to the right engagement with UK government, BECCS at Drax Power Station could remove 8 million tons of CO2 each year by 2030, and Drax is exploring the potential of other international BECCS sites, including in the U.S., where the recent Inflation Reduction Act has encouraged a host of new green investments.
But for this to happen, Drax says, the U.K. and EU urgently need to build a robust carbon removals market. This should include an effective certification framework to mark the gold standard, creating greater certainty, transparency and clarity for the industry and its investors.
POLITICO Studio spoke with Gardiner about the potential of BECCS.
Q: Can you tell us more about what BECCS technology is and where Drax fits in?
A: Bioenergy with carbon capture and storage, or BECCS, is the process of safely capturing and permanently storing CO2 from biomass energy generation.
Drax is leading the way in the development of BECCS globally we know the technology works having piloted it at our power station in the UK. We use biomass, sustainably sourced from well-managed forests harvested for timber we use sawmill residues, harvesting residues and fiber, which has little other use or market value, including low-grade roundwood that is not suitable for sawmilling or cannot access higher-value markets. This fiber is then used to generate power.
The principles of the biogenic carbon cycle have been set out by the U.N. Intergovernmental Panel on Climate Change. Relevant EU and U.K. regulatory requirements suggest that when sourced under strict conditions and overseen by robust governance, carbon outputs from biomass should be treated as zero. When you add carbon capture to that, you effectively get carbon removal.
Through the development of BECCS, we are increasingly well-positioned to help address the climate crisis and support energy security in decarbonizing economies around the world.
Q: What is your ambition for Drax over the next decade?
A: We now have a global opportunity with BECCS to support the worldwide transition to net zero.
Over the past decade, Drax has made significant progress toward delivering its mission to enable a zero-carbon, lower-cost energy future. Drax Power Station has become one of Europe’s largest single-site decarbonization projects; since 2012, Drax has reduced its generation scope 1 and 2 emissions by around 99 percent. We’ve also set an ambition to become carbon negative by 2030 with BECCS.
The U.K. and Europe can become leaders in this vital technology. We plan to invest billions of pounds bringing this to life, with the ambition of delivering 12 million tons of carbon removals by 2030 through our BECCS projects internationally, creating thousands of jobs in communities that need them while providing secure, 24-hour renewable power.
Q: Why are you so confident that BECCS is a critical solution to the climate crisis?
A: It’s clear the world needs carbon removals to achieve its climate goals and BECCS is the most scalable of these technologies. Indeed, nearly all realistic global pathways to limit warming to 1.5 degrees Celsius require developing and deploying carbon removal technology, as has been stated by the IPCC.
Recently, with the Russian war in Ukraine, issues around energy security have also been pushed to the brink.
BECCS has many advantages, but crucially it helps address both issues providing carbon removals and generating renewable power, instead of using it.
And, when done well, BECCS supports healthier forest management, making use of otherwise unmarketable fiber and bolstering the often rural communities that rely on the forests.
Q: But why then has BECCS faced criticism over potential social and environmental costs, and how do you respond to questions about the sustainability of biomass?
A: Biomass is an important part of the solution to the climate crisis, but only if and when it is done in a sustainable way. At Drax we are committed to ensuring the biomass we source delivers positive outcomes for nature, the climate, and the communities in which we operate. We have substantial internal and external governance structures in place to support this.
Our approach is underpinned by science from leading global organizations such as the IPCC and the and governed by robust standards to align our biomass sourcing to the strict sustainability requirements of the geographies in which we operate.
Recently, we have seen the revision of the Renewable Energy Directive reaffirm the benefits of sustainably sourced biomass and strengthen sustainability criteria in the EU, which is very encouraging.
Q: What are the policy challenges of deploying BECCS at scale globally and in the EU?
A: The U.K. and the EU need to accelerate policy support and investment frameworks for BECCS if they are to establish themselves as world leaders in carbon removals.
Some of the things that need to be considered include creating the appropriate policy frameworks and investment conditions for this technology, and standardization of the removals themselves. This includes determining best practice for high-quality permanent removals, how they should be measured and monitored, and how removals may be traded.
The EU Commission’s proposal on the EU certification of carbon removals is a step in the right direction.
Q: What kind of standards need to be in place to ensure the sustainability and viability of carbon removals?
A: For BECCS to reach its full potential, we need a global certification framework, and it is great that the EU is already taking steps to put this in place. A consistent and standardized approach to carbon removal certifications will give confidence in the market, providing transparency and certainty for both the demand and supply side.
We need a system of certification that people believe in and buy into. This is why we need transparent and robust rules and procedures to ensure that the certification process is able to detect low-quality removals and removals that would have taken place anyway, as well as any attempt to certify the same activity twice or to use the same certificate twice.
It’s great to see that the EU Commission’s proposal on the EU certification includes robust rules to mitigate risk, such as the detection of low-quality removals and carbon removal activities not actually delivering the removals as planned.
Aside from the above, a positive development for scaling carbon removals would also be their integration into the European Emissions Trading System. Permanent removals of CO2 are ripe for inclusion in cap-and-trade systems due to their durable storage and easy measurability. Compliance markets provide the certainty and demand necessary for investment in removals projects like our own.
It’s now time for European governments to accelerate policy support for carbon removals technologies like BECCS and establish themselves as a world leader in essential green investment.