Drax to supply feedstock for Pathway’s SAF plant

UK-based renewable energy company Drax Group entered in a feedstock agreement with US-based carbon-negative energy company Pathway Energy for supply of over 1m tonnes of sustainable biomass pellets annually to Pathway’s proposed SAF plant on the US Gulf Coast.

“Reaching heads of terms on this deal with Pathway is an important step in the energy transition and for decarbonising the aviation sector through sustainable aviation fuel production, which Drax is proud to be a part of. We also share Pathway’s aim of scaling bioenergy with carbon capture and storage to deliver the carbon removals that the world needs to fight climate change,” said Will Gardiner, Drax Group CEO.

Moreover, Drax has also announced plans to invest up to $10m in the project through a convertible loan note.

The new plant, once operational, will produce 30m gallons of carbon-negative SAF annually. Pathway aims to begin construction in early 2026 and commence commercial production in 2029.

“This innovative agreement catalyses our aligned commitment with Drax to decarbonize the aviation industry and establishes the strategic alignment with Drax to deploy additional projects leveraging proven biomass conversion technologies, sustainable biomass feedstock, and carbon capture and sequestration. With a global scale supply of CORSIA-compliant biomass material, we are well-poised to address one of the hardest to abate industrial sectors through the production of carbon-negative sustainable aviation fuels,” said Steve Roberts, CEO and founder of Pathway Energy.

Both companies share a common interest in bioenergy with carbon capture and storage (BECCS). Pathway plans to integrate a BECCS system into the Port Arthur site, which could remove 1.9m tonnes of CO2 from the atmosphere annually while powering the SAF facility and ensuring the jet fuel is carbon negative.