The sustainable fiber supplied will enable
high-quality carbon removals, to be sold as credits on the
voluntary carbon market
HOUSTON, Jan. 31,
2024 /PRNewswire/ -- Carbon removals and
renewable energy company Drax Group has announced a new partnership
with Molpus Woodlands Group (Molpus). The agreement will provide
Drax with an option to purchase sustainably sourced woody biomass
to fuel its bioenergy with carbon capture and storage (BECCS)
operations in the US Southeast.
Drax will have the option to take up to 1 million green tons per
year of sustainably sourced fiber under a long-term fiber supply
agreement. This supply will anchor Drax's BECCS developments in the
region, which will generate renewable baseload power to contribute
toward US energy independence while permanently removing carbon
dioxide from the atmosphere.
"The renewable power produced through BECCS will contribute to a
more diverse and resilient US power grid, while supporting hundreds
of jobs across the US South, particularly in rural communities,"
said Arabella Freeman, Senior
Vice President of Biomass Strategy at Drax. "The sustainable
fiber secured through this agreement with The Molpus Woodlands
Group, a leading US forestry company, takes us one step closer to
bringing Drax's BECCS ambitions to life."
Sustainably sourced biomass – when paired with carbon capture
and storage technology – is the only carbon negative technology
that can permanently remove carbon from the atmosphere while
simultaneously contributing to the diversity of the power grid. The
fiber to be provided through Molpus meets Drax's high
sustainability standards, enabling the production of high-quality
carbon dioxide removals (CDR) credits that can be purchased on the
voluntary carbon market to help decarbonize other organizations and
industries.
Sustainable fiber is sourced from low-grade roundwood including
forest thinnings and residues left over from timber harvesting.
Low-grade roundwood is not suitable for sawmilling, and BECCS can
provide a valuable new market for this forestry byproduct.
This partnership with Molpus represents a key milestone toward
Drax realizing its intent to become a global leader in carbon
removals through the implementation of BECCS technology, with the
goal of capturing 6 million metric tonnes of carbon a year in the
US.
Drax's new and future BECCS projects could also result in
hundreds of permanent jobs, with thousands more supported during
construction and through the supply chain. Landowners will also be
incentivized to practice sustainable forest management to improve
the health and resilience of forests for generations to come.
"Drax shares our passion for responsible forest management and,
in bringing BECCS to the Southeastern US, will provide a valuable
use for the fiber sourced from sustainable forest management
practices, lumber production, and other related industries," said
Terrell Winstead, President and
CEO at Molpus. "Together, we look forward to supplying value to
the power grid, economy, environment, and local communities
throughout the region for years to come."
To learn more about BECCS by Drax and our ambition to remove 6
million tons of carbon annually in the
United States, visit
https://www.drax.com/bioenergy-with-carbon-capture-and-storage-beccs/.
To learn more about Molpus' sustainable forestry practices,
visit https://www.molpus.com/esg/.
About Drax
Drax Group's purpose is to enable a
zero carbon, lower cost energy future and in 2019 announced a
world-leading ambition to be carbon negative by 2030, using
bioenergy with carbon capture and storage
(BECCS) technology.
Drax's approximately 3,000 employees operate across three
principal areas of activity – electricity generation, electricity
sales to business customers and compressed wood pellet production
and supply to third parties. For more information, visit
www.drax.com.
About Molpus Woodlands Group
The Molpus Woodlands
Group, LLC (Molpus), an SEC registered investment adviser,
acquires, manages, and sells timberland as an investment vehicle
for pension funds, college endowments, foundations, insurance
companies, and high-net-worth individual investors. Molpus
currently manages over 1.7 million acres of timberland investments
in 15 states. It incorporates environmental, social, and governance
(ESG) policies and practices into investment analysis and
decision-making. It believes its strong ESG initiatives have
positive implications for the environment and the future of Molpus.
Molpus was founded in 1996 as a timber investment management
organization and has a company legacy dating back to 1905. Molpus
is one of the oldest timber-related companies in the United States. For more information, visit
www.molpus.com.
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SOURCE Drax Group