Drax Group and Pathway Energy have announced a landmark agreement that could transform the future of sustainable aviation. The deal positions Drax as a major supplier of sustainable biomass pellets for Pathway’s ambitious sustainable aviation fuel (SAF) plant on the US Gulf Coast. This partnership underscores the growing demand for innovative solutions to decarbonise aviation and marks a pivotal step in the global energy transition.
Drax is set to supply over one million tonnes of sustainable biomass pellets annually to Pathway’s proposed SAF facility, once operational. This agreement highlights a shared commitment to reducing aviation’s carbon footprint. Under a separate strategic arrangement, Drax may invest up to $10 million in the project, demonstrating its confidence in Pathway’s vision, though no final decision has been made.
The SAF plant, with an expected operational date of 2029, will produce 30 million gallons of carbon-negative SAF each year—enough to fuel 5,000 long-haul flights. This ambitious project reflects the vital role SAF will play in the aviation industry’s net-zero journey. Modelling by the International Air Transport Association suggests SAF could contribute 65% of the emissions reductions required to meet the sector’s 2050 goals.
In addition to the SAF plant, Pathway plans to develop a cutting-edge bioenergy with carbon capture and storage (BECCS) system at its Port Arthur site. This technology could remove up to 1.9 million tonnes of CO₂ from the atmosphere annually, powering the SAF facility and ensuring its jet fuel is carbon-negative. The collaboration may extend further, with Drax potentially supplying biomass to additional Pathway projects in the 2030s, scaling up its contribution to a greener future.
The leaders of both companies emphasised the significance of this partnership. Will Gardiner, CEO of Drax, described it as the largest third-party supply deal for the company’s pellet business, signalling a major step forward in decarbonising aviation. Steve Roberts, CEO of Pathway Energy, highlighted the alignment of both companies’ strategic goals to deliver carbon-negative energy solutions through proven technologies and sustainable practices.
This innovative partnership between Drax and Pathway is set to reshape the aviation sector, combining cutting-edge technology and sustainable resources to combat climate change.
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.
