Drax eyes increased supply of pellets for SAF

Renewable energy company Drax Group announced that it plans to supply biomass including pellets to existing and new markets in North America, Asia and Europe for the production of sustainable aviation fuel (SAF).

The company, in its trading update, said that it continues to target post 2027 recurring Adj. EBITDA over £250m from pellet production including from a combination of own-use and third-party sales, from existing and new markets, including SAF, where Drax is developing a pipeline of biomass sales opportunities in North America, Asia and Europe.

“We believe that biomass has a growing role to play in the energy transition, such as in the production of SAF. We have also launched our new Elimini carbon removals business which aims to develop projects providing 24/7 power and carbon removals outside the UK, offering long-term investment opportunities in what we believe could be a major new global market,” said the group’s CEO Will Gardiner.

Pellets, often derived from compressed wood chips or other biomass materials, offer a promising avenue for SAF production.

By converting these pellets through advanced processes like gasification or pyrolysis, a synthetic gas or bio-oil is created. This intermediate product can then be refined into SAF, a cleaner-burning alternative to traditional jet fuel.

While the technology is still developing, it presents a potential solution for reducing aviation’s carbon footprint, especially when sourced from sustainably managed forests or agricultural residues.