DRAX GROUP PLC Drax Group announced a new carbon removals deal with Karbon-X. Karbon-X will purchase carbon dioxide removals 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. 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 consistently 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. 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.
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 separate BECCS-derived CDRs from carbon offsets, allowing organizations to have greater trust in the impact of their investments.
