Drax Group, the UK-based renewable energy pioneer, is set to play a transformative role in the future of sustainable aviation fuel (SAF) through a significant partnership with Pathway Energy. This collaboration centres on a multi-year agreement to supply over 1 million tonnes of sustainable biomass pellets annually to Pathway’s upcoming SAF plant on the US Gulf Coast. The potential for strategic investment further cements Drax’s commitment to innovative carbon-negative solutions that address the growing global demand for greener aviation.
Drax’s sustainable biomass will be a cornerstone of Pathway Energy’s $2 billion SAF facility, slated to produce 30 million gallons of carbon-negative jet fuel each year upon completion in 2029. This breakthrough fuel could power up to 5,000 carbon-neutral long-haul flights annually, marking a significant step towards decarbonising the aviation industry. SAF offers the potential to slash carbon emissions by up to 80% compared to traditional jet fuels, a crucial component of the International Air Transport Association’s pathway to net zero emissions by 2050.
Adding to this ambitious vision, Drax is exploring a potential strategic investment of up to $10 million via a convertible loan note, underscoring its alignment with Pathway’s mission. Both companies also share a long-term focus on bioenergy with carbon capture and storage (BECCS), a revolutionary technology that combines renewable energy generation with carbon removal. Pathway’s Port Arthur site aims to incorporate BECCS, potentially eliminating 1.9 million tonnes of carbon dioxide annually while powering the SAF plant and ensuring its operations remain carbon-negative.
Looking ahead, Drax may expand its supply of biomass to additional Pathway Energy projects, further supporting the production of SAF at scale. This could see a delivery of an extra 2 million tonnes of sustainable pellets annually across multiple sites by the 2030s.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
