Drax Applauds Canada’s Budget Commitment to Biomass and Clean Energy Investments
06 Abril 2023 - 3:36PM
Drax, a leading producer and supplier of sustainable biomass,
commends the Government of Canada on its recent Budget 2023 plan
that supports significant investments in clean energy technologies
and the need for biomass to achieve a clean economy.
The Budget 2023 plan specifically highlights biomass as a key
component of the clean energy sector, acknowledging its potential
to reduce reliance on diesel fuel in rural and remote Indigenous
communities. The government has also pledged to engage with the
biofuels industry to explore opportunities for growth, including
examining support mechanisms for low-emissions fuels.
“We are excited by the Canadian government's commitment to clean
energy and the recognition of biomass as a crucial component in
achieving a cleaner future,” said Will Gardiner, CEO of Drax.
“Biomass is a win-win for Canada as it is not only viewed by
leading scientists as a dispatchable, renewable fuel source in the
fight against climate change, it also supports thousands of
Canadian jobs and contributes millions to local economies.”
Drax has invested over $830 million in the Canadian forestry
sector, supporting more than 10,000 jobs and contributing $1.1
billion to the nation's GDP in 2021. The company utilizes 81%
sawmill residues to produce biomass pellets, with the remainder
consisting of material collected from harvest residuals and
low-grade wood, such as tops and branches, low-quality trees or
parts that are diseased or misshapen. The market for low-grade wood
helps improve the health and productivity of forests while reducing
wildfire risks and disease.
“We look forward to working closely with the Canadian government
to further advance the biomass industry and opportunities for
forest workers, including through meaningful partnerships with
First Nations communities and businesses,” said Gardiner.
Budget 2023 also calls for the allocation of $500 million to the
Strategic Innovation Fund to support the development and
application of clean technologies in Canada. Additionally, the fund
will direct up to $1.5 billion of its existing resources towards
projects in sectors including clean technologies, critical minerals
and industrial transformation.
Drax has a goal is to become the global leader in carbon
removals by deploying bioenergy carbon capture and storage (BECCS).
This includes building large scale carbon removal facilities,
creating thousands of jobs in new clean energy technology and
generating dispatchable, renewable power for homes and industries –
while supporting the growth of the forestry sector and other
intermittent energy sources.
“Drax stands ready to support Government on the development of a
technology-inclusive approach to the carbon contracts for
difference announced in Budget 2023,” said Gardiner. “Appropriate
policy mechanisms are critical to incentivise investment in carbon
dioxide removal technologies like BECCS, and we welcome this
positive step to develop a BECCS industry in Canada.”
Media contact:
Caroline BleayCommunications ManagerDraxE:
caroline.bleay@drax.comT: 778-897-1712
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 around 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/ca.
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