Carbon removals and renewable energy company Drax Group today (March 28) announced a new carbon removals deal with Karbon-X, a leading environmental company. The agreement is the latest indicator of growing demand for high-quality carbon removals from bioenergy with carbon capture and storage (BECCS).
Karbon-X will purchase carbon dioxide removals (CDR) credits from Drax representing 25,000 metric tons of permanently stored carbon at $350 per tonne under the terms of the agreement. The deal, which will occur over a five-year period starting in 2030, is linked to Drax's planned deployment of carbon negative BECCS in the United States.
"We're excited to work with organizations like Karbon-X that understand the importance of investing in high-value carbon removals today," said Laurie Fitzmaurice, President, Carbon Removals at Drax. "The CDR market, which is already maturing at a rapid pace, is expected to experience a supply crunch within the next decade as companies and countries approach their deadlines for carbon reduction targets."
The agreement with Karbon-X is the latest in a string of previously announced carbon removals memorandums of understanding that have included Respira and C-Zero. Drax also launched a new independent business unit earlier this year that is focused on becoming the global leader in large-scale carbon removals. This business unit will oversee the development and construction of Drax's new-build BECCS plants in the US and internationally, and it will work with a coalition of strategic partners to focus on an ambitious goal of removing at least 6 Mt of CO2 per year from the atmosphere.
BECCS is a carbon removal technology that uses sustainably sourced biomass to generate renewable energy while permanently sequestering the carbon underground. Measuring the impact of these high-quality carbon removals is more straightforward when compared with other solutions like nature-based removals, resulting in high demand.
"This agreement with Karbon-X represents another major step forward in delivering BECCS by Drax in the United States to help meet this growing demand to decarbonize our planet," said Fitzmaurice.
Karbon-X intends to sell the credits it purchases from Drax on the voluntary carbon market, enabling individuals and organizations to achieve their own emissions reduction targets. It follows a stringent set of guidelines to ensure it selects only high-quality projects and providers, like BECCS by Drax.
"We are thrilled to be working alongside Drax in the pursuit of their carbon removals program," said Chad Clovis, CEO of Karbon-X. "This partnership represents significant progress in our collective mission to combat climate change and build a more sustainable future."
As companies, industries, and countries increasingly look to engineered carbon removals to ensure they can meet their climate commitments, CDRs from carbon negative BECCS are becoming an integral piece of this market. Through BECCS, carbon removals are quantifiable and auditable, resulting in a higher quality credit. This separates BECCS-derived CDRs from carbon offsets, allowing organizations to have greater trust in the impact of their investments.
To learn more about how Drax is helping organizations achieve their sustainability goals through high-quality carbon removals, visit www.draxcarbonremovals.com
About Drax
Drax Group's purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.
Drax's approximately 3,000 employees operate across three principal areas of activity - electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information, visit www.drax.com.
About Karbon-X
Karbon-X is a leading environmental company that empowers individuals to offset their carbon footprints and drive positive change for the planet. Through its user-friendly mobile app, Karbon-X allows users to contribute to impactful projects and make a real difference in the fight against climate change. The organization is committed to transparency, convenience, and supporting projects that reduce greenhouse gas emissions.
