UK-headed carbon removals and renewable energy company Drax Group plc has announced a new partnership with Molpus Woodlands Group LLC (Molpus). The agreement will provide Drax with an option to purchase sustainably sourced woody biomass to fuel its bioenergy with carbon capture and storage (BECCS) operations in the US Southeast.
Currently managing over 1.7 million acres (≈ 686,800 ha) of timberland investments in 15 US States, Molpus Woodlands Group acquires, manages, and sells timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth individual investors.
According to a statement, Drax will have the option to take up to 1 million green tonnes per year of sustainably sourced fiber under a long-term fiber supply agreement.
This supply will anchor Drax’s BECCS developments in the region, which will generate renewable baseload power to contribute toward US energy independence while permanently removing carbon dioxide (CO2) from the atmosphere.
The renewable power produced through BECCS will contribute to a more diverse and resilient US power grid, while supporting hundreds of jobs across the US South, particularly in rural communities. The sustainable fiber secured through this agreement with The Molpus Woodlands Group, a leading US forestry company, takes us one step closer to bringing Drax’s BECCS ambitions to life, said Arabella Freeman, SVP of Biomass Strategy at Drax.
Enable high-quality CDR credits
Sustainably sourced biomass – when paired with carbon capture and storage technology – is the only carbon-negative technology that can permanently remove carbon from the atmosphere while simultaneously contributing to the diversity of the power grid.
The fiber to be provided through Molpus meets Drax’s high sustainability standards, enabling the production of high-quality carbon dioxide removal (CDR) credits that can be purchased on the voluntary carbon market to help decarbonize other organizations and industries.
Sustainable fiber is sourced from low-grade roundwood including forest thinnings and residues left over from timber harvesting.
Low-grade roundwood is not suitable for sawmilling, and BECCS can provide a valuable new market for this forestry byproduct.
Key milestone
This partnership with Molpus Woodlands represents a key milestone toward Drax realizing its intent to become a global leader in carbon removals through the implementation of BECCS technology, intending to capture up to 6 million tonnes of carbon a year in the United States.
Drax’s new and future BECCS projects could also result in hundreds of permanent jobs, with thousands more supported during construction and through the supply chain.
Landowners will also be incentivized to practice sustainable forest management (SFM) to improve the health and resilience of forests for generations to come.
Drax shares our passion for responsible forest management and, in bringing BECCS to the Southeastern US, will provide a valuable use for the fiber sourced from sustainable forest management practices, lumber production, and other related industries. Together, we look forward to supplying value to the power grid, economy, environment, and local communities throughout the region for years to come, said Terrell Winstead, President and CEO at Molpus.
