C-Zero and Drax Forge Partnership to Enable Carbon Removal
C-Zero Markets and Drax have recently inked a contract to trade carbon dioxide removal credits from Drax’s inaugural bioenergy facility with carbon capture and storage (BECCS) project in the United States.
Under the agreement, C-Zero will purchase several thousand metric tonnes of carbon removals from Drax’s initial BECCS initiative at a rate of $300 per tonne. Drax’s long-term objective is to deliver 12 million metric tonnes of Carbon Dioxide Removals (CDRs) annually by 2030 through the deployment of BECCS technology.
Mike Ridler, Director of C-Zero Markets, expressed his enthusiasm, stating, “We are delighted to be among the first companies to finalize a deal in this emerging market for carbon removals, and it is particularly gratifying to secure the certificates from Drax’s inaugural BECCS project. Drax is a leading player in this field, and our collaboration on process, compliance, and sustainability has been exceptional. This holds significant importance for our business and the clients we support.”
Organizations utilize carbon dioxide removals (CDRs) to offset their challenging-to-reduce carbon emissions, striving to achieve a net-zero or even negative carbon footprint. There is an increasing demand for more robust and lower-risk carbon credits, such as those generated by carbon removal technologies, as companies pursue their decarbonization objectives.
Bruce Brown, Director of Compliance Markets at C-Zero, commented, “Investment in BECCS projects and the trade of certificates and evidence is crucial for the UK to fulfill its target of capturing 5 million tonnes per year of CO2 using engineered greenhouse gas removals technology (GGRs).”
Mike further added, “I am thrilled that our partnership with Drax will contribute to addressing the other side of the climate equation through carbon removal. This will be a pivotal development for our clients and us, and we are already witnessing significant interest.
“This market will rapidly evolve, and being involved from the outset is a game-changer for us and, more importantly, for our clients.”
Marc Bradbrook, Director of Business Development at Drax, emphasized, “Drax aims to take the lead globally in BECCS, providing renewable energy and carbon removals while becoming a major player in this potentially trillion-dollar market.
“While the CDR market is still in its early stages, the evident demand for removals coupled with the progressive policies being formulated in the US to support BECCS is fostering the necessary investments to drive this critical new sector of the economy. We hope that this agreement with C-Zero will demonstrate the continued growth of the sector and inspire other companies to invest now in supporting the development of this vital market.”
The C-Zero BECCS team will concentrate on industrial carbon capture, waste management, Carbon Capture, Usage, and Storage (CCUS)-enabled hydrogen, power generation with CCUS, and engineered GGRs.
Access to the BECCS market will be integral to the services provided by C-Zero to assist their clients in achieving their net-zero emissions targets, necessitating the procurement of carbon offset credits to compensate for emissions that cannot be eliminated directly. Thus, this agreement is essential, positioning C-Zero and its client base at the forefront of this new, exciting, and evolving opportunity.