Drax launches Elimini at Climate Week NYC

In January 2024, Drax Group revealed plans to establish a new independent business unit to become a global leader in delivering large-scale and high-integrity carbon dioxide removals (CDR).

By advancing bioenergy with carbon capture and storage (BECCS) in the United States and beyond, Elimini will help meet soaring demand for 24/7 renewable energy and high-integrity carbon removals.

Gigatonne CDR scale needed

Nearly all realistic pathways to limit global warming to 1.5 ^oC and 2 ^oC require developing and deploying carbon removal technologies at gigatonne scale and tripling renewable energy capacity.

Elimini will pair 24/7 renewable energy production with carbon capture technology through bioenergy with carbon capture and storage (BECCS) – the only technology that currently supports the delivery of both targets simultaneously.

The business has been launched as new yet-to-be-released research finds that 74 percent of Americans are concerned about climate change, with 56 percent believing the government should be doing more to support the development of carbon removal (CDR) technologies – and for those already familiar with these technologies, that number jumps to 72 percent, suggesting that familiarity directly drives increased favorability.

Elimini’s purpose is to remove carbon for good. To achieve this, it is convening engineers, environmentalists, communities, investors, and innovators to scale the market for carbon removals, with the aspiration of transforming economies from carbon emitters to carbon removers.

As an independently operated, wholly-owned subsidiary within Drax Group, Elimini will also sell carbon removals generated at Drax Power Station, which conducted the first BECCS pilot of its kind in Europe, and with the right government support will convert that facility to BECCS.

Carbon removals are desperately needed to reverse the legacy emissions warming our planet – and that industry represents more than a US$1 trillion opportunity once it reaches the gigatonne scale. Elimini will have the focus and agility needed to become a leader in the maturing carbon market, rapidly advancing high-quality carbon removals and renewable energy production at a global scale, said Will Gardiner, Elimini Executive Chair and Drax Group CEO.

Investments and offtakes in place

Elimini has announced investments from first-mover climate leaders with Carbon Dioxide Removal (CDR) offtake agreements with Ultrabulk, Holborn Trading, Karbon-X, ClimateTrade, and NValue, along with the conversion of two previous Memoranda of Understandings (MoUs) with C-Zero Markets to offtakes with Elimini.

Furthermore, it has signed brokerage agreements with ClimateTrade, ClearBlue Markets, and Karbon-X.

We are excited and proud to support Elimini on its carbon removal initiative. Holborn Trading is invested because we believe in securing a sustainable future. By supporting innovative solutions like decarbonization technologies and projects including carbon dioxide removal, we’re not just offsetting emissions – we’re actively restoring the balance of our planet’s atmosphere, ensuring a healthier environment for generations to come, said Walid Rechache, Co-Founder and CEO at Holborn Trading.

Biomass supply and owner’s engineer selected

Manulife Investment Management and Molpus Woodlands have signed options to provide sustainably sourced woody biomass to fuel Elimini’s BECCS operations in the US Southeast.

Elimini will launch a new Forest Landowners Assistance Program for local, family-owned, or underserved landowners to receive assistance with managing their forests and providing feedstocks for BECCS facilities that will meet Elimini’s high sustainability standards.

The company has selected the engineering firm Sargent & Lundy as the owner’s engineer to support the development of a BECCS project in the United States.

Full-scale development is underway at the most advanced site for our first greenfield BECCS project.

Once fully operational, the 300 MWe project will produce 2 TWh of renewable energy while capturing 3 million tonnes of carbon dioxide (CO₂) annually.

Elimini is entering the market at a critical time for our planet and the global economy when unprecedented demand for power threatens to extend the world’s dependence on coal and other fossil fuels. By advancing BECCS and other carbon removal technologies in the United States and beyond, we will provide organizations and governments with realistic alternatives to power their communities and businesses while staying on track to achieve their climate commitments, said Laurie Fitzmaurice, President of Elimini.

The company is also partnering with innovative institutions to push the boundaries of carbon capture technology, including:

• University of Texas: Supporting research on carbon capture, utilization, and storage (CCUS).
• University of Houston: Supporting the Center for Carbon Management with its goal of researching and developing projects that will advance all aspects of carbon management as it applies to the energy industry.
• Stephen F. Austin State University: Supporting the Arthur Temple College of Forestry and Agriculture, contributing funds to an endowment that provides scholarships for forestry students.
• Mission Innovation: Sponsorship of the SMART CDR Competition, a first-of-its-kind global competition for university and college students from around the world.

An Advisory Council, formed of experts from across the carbon removal value chain, has been established to help Elimini shape the company’s strategy and hold it true to its purpose and values.

Elimini’s stated purpose is to remove carbon for good. As a member of the Advisory Council, I look forward to working with the company as it seeks to address some very interesting and exciting opportunities, said David Hill, Vice Chairman of the Board of Directors of the New York Independent System Operator and Senior Research Scholar at Columbia University’s Center on Global Energy Policy.