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Enhancing Biomass Project Economics with CO2 Market Opportunities

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By Sam A. Rushing

January 14, 2025

Carbon Capture 

The CO2 industry would benefit very well from biomass sources in many markets,

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Drax Group plc and the U.K. Association for Renewable Energy and Clean Technology (REA) are stressing the important of bioenergy with carbon capture and storage (BECCS) in meeting net-zero goals following disparaging comments made by a U.K. official.

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Drax Group plc on Sept. 24 announced the launch of Elimini, a wholly owned, U.S.-based subsidiary focused on the development of BECSS in North America. Full-scale development is already underway on a 300 MW BECCS project in the U.S.

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Woodland Biofuels Inc., announced a planned $1.35 billion investment at the Port of South Louisiana to establish the world's largest carbon negative renewable natural gas plant / ultra-green hydrogen facility.

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Gevo Inc. on Sept. 12 announced it has entered into a definitive agreement to acquire the ethanol production plant and CCS assets of Red Trail Energy LLC for $210 million. Gevo plans to add net-zero SAF production capacity to the site.

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Green Impact Partners Inc. has finalized the carbon credit pathways under the Alberta Technology Innovation and Emissions Reduction program for its flagship project, the Future Energy Park, to be located in Calgary, Alberta.

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Drax Group plc on July 26 reported wood pellet production volumes and margins were both up during the first half of 2024. The company also reported progress with BECCS projects in both the U.K. and abroad.

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The European Commission on July 2 approved, under EU State Aid rules, Sweden’s plans to provide up to EUR 3 billion in subsidies to support carbon capture and storage (CCS) projects focused on biogenic CO2.

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DNV, the independent energy expert and assurance provider, has validated a new methodology for the certification of net carbon dioxide removals delivered using bioenergy with carbon capture and storage (BECCS).

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Carbon Clean and AGRA Industries have signed an MOU to provide Carbon Clean’s semi-modular CaptureX technology to companies in agriculture-related sectors, including the production of biofuel, ethanol and sustainable aviation fuel (SAF).

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Babcock & Wilcox been granted a limited notice to proceed (LNTP) by NorthStar Clean Energy to begin work on a bioenergy with carbon capture and storage (BECCS) conversion of a former coal-fired power plant in Filer City, Michigan.

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The U.S. Department of Energy on May 28 awarded funding to seven biomass with carbon removal and storage projects that will use plants and algae to remove carbon dioxide from the atmosphere for permanent storage underground or in long-lived products.

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The U.K. Association for Renewable Energy and Clean Technology (REA) on May 15 released a statement highlighting the ongoing importance of biomass power in reaching the U.K.’s net zero goals.

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Drax Group on April 18 announced a carbon removals deal with C-Zero Markets, an environmental consultancy. Under the deal, C-Zero will purchase carbon dioxide removals credits from Drax representing 2,000 metric tons of permanently stored carbon.

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A bioenergy with carbon capture and storage (BECCS) project under development in Sweden by Stockholm Energi was awarded planning approval on March 28 by the country’s Land and Environmental Court.

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Strategic Biofuels has received a strategic investment commitment from Magnolia Sustainable Energy Partners, a newly formed Japanese-based investment consortium created by Sumitomo Corporation of Americas and JX Nippon Oil & Gas Exploration Corp.

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Technip Energies and LanzaTech Global Inc. were selected by the U.S. Department of Energy Office of Clean Energy Demonstrations to begin award negotiations for up to $200 million funding to support project SECURE.

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Drax Group on March 28 announced a new carbon removals deal with Karbon-X. Under the agreement, Karbon-X will purchase CDR credits from Drax representing 25,000 metric tons of permanently stored carbon at $350 per metric ton.

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Drax Group has announced an MOU with Viking CCS, the Humber-based CO2 transportation and storage network led by Harbour Energy, together with non-operated partner bp, to assess options to transport and store CO2 in the Humber region.

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The U.S. Department of Energy’s Office of Fossil Energy and Carbon Management in March issued a notice of intent (NOI) to launch a Voluntary Carbon Dioxide Removal Purchasing (CO2RP) Challenge.

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ABB has signed an agreement with Cap Clean Energy to collaborate on SAF production sites in Canada. As part of the MOU, ABB will explore how its automation, electrification and digital technology can optimize the biofuel facilities.

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Ethanol Producer Magazine announced this week the preliminary agenda for the 2024 International Fuel Ethanol Workshop & Expo (FEW) taking place June 10-12, 2024 at the Minneapolis Convention Center in Minneapolis, Minnesota.

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Drax Group plc released 2023 financial results on Feb. 29, reporting its pellet production segment achieved robust performance in a challenging market environment. The company also discussed progress on its BECCS projects in the U.S. and U.K.

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Drax has become the latest founder member of the University of Sheffield’s newly-launched Energy Innovation Centre. The new partnership will drive forward research into next-generation carbon capture technology, including innovations in BECCS.

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EE North America and Montauk Renewables Inc. have signed a long-term contract for the delivery of 140,000 tons/year of biogenic CO2 over a minimum 15-year term. Under the agreement, Montauk will capture, clean and liquify CO2 at select Texas facilities.

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New analysis by Baringa and commissioned by Drax Group finds that Drax’s proposals for bioenergy with carbon capture and storage (BECCS) could save the U.K. up to £15 billion in whole economy costs between 2030 and 2050.

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Drax Group has announced a new partnership with Molpus Woodlands Group. The agreement will provide Drax with an option to purchase sustainably sourced woody biomass to fuel its BECCS operations in the U.S. Southeast.

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Global renewable energy company Drax Group plc has announced that it plans to establish a new independent business unit that will focus on becoming the global leader in delivering large-scale and high-integrity carbon removals.

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Sumitomo Corp. Europe Ltd. (SCEU) and Inherit Carbon Solutions AS jointly announce that Sumitomo Corp. has made a strategic investment in Inherit, a pioneer in biomass-derived carbon dioxide removal (CDR).

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Ethanol Producer Magazine and BBI International announced that they are now accepting speaker presentation proposals for the 2024 International Fuel Ethanol Workshop & Expo. The event will be held June 10-12, 2024, in Minneapolis, Minnesota.

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