Drax Group CEO Will Gardiner discussed the status of the company&rsquo;s bioenergy with carbon capture and storage (BECCS) projects in the company&rsquo;s first quarter trading update, released April 26. He said the company has entered formal discussions with the U.K. government regarding its proposed BECSS project at Drax Power Station and is screening more than 10 options for BECCS projects in the U.S.
"We remain excited about the opportunity to do BECCS in the&nbsp;U.K.,&rdquo; he said. &ldquo;Whilst the project is not currently in the Track 1 process, we have commenced formal discussions with the Government to facilitate the transition to BECCS at&nbsp;Drax Power Station&nbsp;by 2030.&rdquo;
Gardiner also briefly addressed the potential to develop BECCS projects in North America. "In the U.S, we continue to make good progress screening options for over 10 BECCS projects which will deliver long-term, large-scale carbon removal,&rdquo; he said.
With regard to its pellet operations in North America, Drax continues to focus on ensuring its facility in Demopolis, Alabama, reaches full capacity and reliable safe operation. As outlined in its 2022 financial report, released in February, pellet production costs have increased due to inflationary pressures, primarily those associated with transportation and utilities. Taken together with costs incurred in providing supply-side flexibility, Drax said it continues to expect production costs to be higher this year. The company also indicated it is continuing efforts to optimize its supply chain and reduce the cost of biomass.
At Drax Power Station, the company continues to optimize generation across all four of its biomass units, based on system need and sustainable biomass supply. Drax on April 25 announced the official end of coal-fired generation at the facility. Work is now beginning on a decommissioning process to remove coal-related infrastructure from the site.
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Drax company has entered formal discussions with the U.K. government regarding its proposed BECSS project at Drax Power Station.

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Drax Group CEO Will Gardiner discussed the status of the company's BECCS projects in the company's Q1 trading update, released April 26. He said the company has entered formal discussions with the U.K. government and is evaluting U.S. projects. 

Drax continues work on potential BECCS projects in UK, US

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