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Drax discusses plans for new pellet projects, BECCS development

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By Erin Krueger

May 03, 2022

Pellets Power UK 

Drax Group plc brought 400,000 metric tons of new biomass pellet production capacity online during the first quarter of 2022. The company plans to make a final investment decision on up to 1 million tons of additional capacity this year.

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The U.K. government recently released updated data showing that bioenergy production increased 1.8 percent in 2021, reaching 40 terawatt hours (TWh). Bioenergy was the only renewable technology to report increased generation for the full year.

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Greencoat Capital on April 28 announced that funds managed by the company have acquired the Margum Green Energy Plant, a 41.8 megawatt (MW) waste wood-fired biomass plant located in the U.K., from Glennmont Partners.

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The U.S. exported 628,659.8 metric tons of wood pellets in February, down when compared to the 655,656.5 metric tons exported in January, but up when compared to the 556,801.7 metric tons of exports reported for February 2021.

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Drax Group has opened a new pellet plant at Demopolis in Alabama. At full capacity the plant at Demopolis, which is Drax's second production facility in Alabama, will produce 360,000 metric tonnes of sustainable biomass pellets a year.

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British Airways has taken delivery of the first batch of sustainable aviation fuel produced by Phillips 66 Ltd., making it the first airline in the world to start using sustainable aviation fuel (SAF) produced on a commercial scale in the U.K.

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Velocys plc has announced its Altalto Immingham Ltd. subsidiary has sold its interst in RDIL, which owns the site for its prosposed SAF plant, to funds mangaed by Foresight Group LLP, with a call option to re-purchase RDIL within three years.

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The U.K. Pellet Council and Forest Stewardship Council have announced they will no longer recognize wood products coming from Russia and Belarus, stopping their import for use in bioenergy applications. The U.K. REA is welcoming those decisions.

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The U.S. exported 655,656.5 metric tons of wood pellets in January, down from 774,410.2 metric tons exported the previous month, but up when compared to the 599,624.2 metric tons exported in January 2021, according to data released by the USDA.

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Renewable energy company Drax Group is donating £280,000 to the Disasters Emergency Committee Ukraine Humanitarian Appeal to support relief efforts for the Ukrainian people following Russia's invasion.

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U.K.-based Active Energy Group has announced the results of the first phase independent combustion testing program conducted on its CoalSwitch fuel in Utah. AEG's CoalSwitch technology produces a high-calorific, high-bulk-density biomass pellet.

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The U.S. EPA is implementing a new process by which the Science Advisory Board will assess the science that informs decisions regarding proposed rules. The process will restore opportunities for peer review and strengthen the independence of the SAB.

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Drax Group plc highlighted progress made towards its goal of ramping up wood pellet production to 8 million metric tons by 2030 while reducing production costs in its 2021 financial report, released Feb. 24.

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Drax Group is ramping up to full production at Leola - the first of three new satellite pellet plants it plans for Arkansas. Construction of the second Arkansas satellite plant in Russellville is underway with commissioning expected in 2022.

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The U.K. government on Feb. 9 announced plans to increase the frequency in which it holds Contracts for Difference (CfD) auctions. Starting in 2023, the auctions will be held annually. Currently, the CfD auctions are held every two years.

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The U.S. exported 774,410.2 metric tons of wood pellets in December, up from 764,259.6 metric tons the previous month and 564,826.2 metric tons in December 2020, according to data released by the USDA Foreign Agricultural Service on Feb. 8.

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bp has acquired a 30 percent stake in Green Biofuels Ltd., the U.K.'s largest provider of hydrogenated vegetable oil (HVO). GBF's products are made from renewable feedstocks such as vegetable oils, animal oils and fat.

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Covanta announced on Jan. 25 that the construction and commissioning phases of its Rookery South Energy Recovery Facility are now complete. The waste-to-energy facility will generate more than 60 megwatts (MW) of low-carbon energy.

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The U.K. government on Jan. 12 announced the launch of the new Hydrogen BECCS Innovation Program, which aims to support the development of innovative technologies that will generate hydrogen from biomass and waste feedstocks via BECCS.

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The U.K. government on Dec. 20 announced its now accepting applications for phase two funding under the Biomass Feedstocks Innovation Program. Entities that received phase one funding are eligible to apply.

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Drax plans capital investments of around £40 million at its North Yorkshire power station during 2022 on the first phase of its BECCS project and ensuring it remains on track to begin delivering vital negative emissions technology in 2027.

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Drax has announced that its subsidiary, Pinnacle Renewable Energy Inc., has agreed to acquire the pellet sales contract book of Pacific BioEnergy Corp., adding 2.8 million metric tons of orders for counterparties in Japan and Europe.

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The U.S. exported 422,109.4 metric tons of wood pellets in October, down from both 690,515.4 metric tons the previous month and 624,359.4 metric tons in October 2020, according to data released by the USDA Foreign Agricultural Service on Dec. 7.

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Drax Group plc on Dec. 1 announced plans to double its biomass pellet production to 8 million metric tons per year by 2030. The company also announced commissioning is nearly complete at its facility in Demopolis, Alabama.

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Covanta Holding Corp. on Nov. 30 announced the completion of its $5.3 billion acquisition by the EQT Infrastructure V fund and released a new sustainability report that includes an overview of 2020 achievements.

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Hawkins Wright weighs in on what might be in store for the broader wood pellet industry.

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UK REA names new chair of Wood Heat Forum

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By U.K. Association for Renewable Energy and Clean Technology

November 29, 2021

The U.K. Association for Renewable Energy and Clean Technology has announced Terence McCracken as the new chair of its Wood Heat Forum. McCracken currently serves as U.K. and Ireland director of sales for Innasol, a distributor of biomass boilers.

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EBA: Gasification can help meet net-zero goals

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By European Biogas Association

November 22, 2021

A new paper released by the European Biogas Association has mapped the opportunities of the gasification's contribution of building European circular economies and reducing carbon emissions as part of the net-zero roadmap.

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On Nov. 11, Advanced Biofuel Solutions Ltd. and Greenergy announced the signing of a joint development agreement to develop, construct and operate up to five municipal waste-based biofuel plants in the U.K.

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Louisiana Gov. John Bel Edwards visited Drax Power Station – the U.K.'s largest renewable power generator – ahead of attending the COP 26 climate summit in Glasgow to see how Drax is leading the way in reducing emissions from the U.K. energy system.

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