C-Zero Markets and Drax have recently entered into an agreement to trade carbon dioxide removal credits generated by Drax’s inaugural bioenergy with carbon capture and storage (BECCS) facility in the United States.
As per the contract, C-Zero will purchase several thousand metric tonnes of carbon removals from Drax’s initial BECCS project at a rate of $300 per tonne. Drax aims to achieve an annual delivery of 12 million metric tonnes of Carbon Dioxide Removals (CDRs) through BECCS by 2030.
Expressing his satisfaction, Mike Ridler, Director of C-Zero Markets, stated, “It’s truly exciting to be one of the pioneering companies to secure a deal in this emerging carbon removal market. Obtaining certificates from Drax’s maiden BECCS project is particularly gratifying. Drax holds a prominent position in this sector, and collaborating with them on processes, compliance, and sustainability has been a remarkable experience. This is of utmost importance to our business and the clients we serve.”
Organizations employ carbon dioxide removals (CDRs) to offset challenging carbon emissions, achieving net-zero or, in certain cases, negative carbon status. Increasingly, organizations are seeking durable and low-risk carbon credits, such as those derived from carbon removal technologies, to meet their decarbonization objectives.
Bruce Brown, Director of Compliance Markets at C-Zero, emphasized, “Investments in BECCS projects and the trade of certificates and evidence are vital for the UK to realize its target of capturing 5 million tonnes of CO2 annually using engineered greenhouse gas removals technology (GGRs).”
Mike further added, “I am thrilled that our partnership with Drax will contribute to solving the other half of the climate equation through carbon removal. This development will prove pivotal for our clients and us. The level of interest we are already receiving is remarkable. This market will evolve rapidly, and our involvement from the outset is a game-changer for us and, more significantly, for our clients.”
Marc Bradbrook, Director of Business Development at Drax, affirmed, “Drax aims to be at the forefront of the global BECCS industry by providing renewable energy and carbon removals, while establishing itself as a major player in this potentially trillion-dollar market.”
Bradbrook continued, “Although the CDR market is still in its early stages, the evident demand for removals, coupled with the progressive policies being developed in the US to support BECCS, is facilitating the necessary investments to drive this vital new sector of the economy. We hope that this agreement with C-Zero will showcase the continued growth of the sector and inspire other companies to invest now to support the development of this crucial market.”
The C-Zero BECCS team will primarily focus on industrial carbon capture, waste management, Carbon Capture, Usage, and Storage (CCUS)-enabled hydrogen, power generation with CCUS, and engineered GGRs.
Access to the BECCS market will be integral to the services offered by C-Zero to support their clients’ net-zero emissions targets. These targets necessitate the purchase of carbon offset credits to compensate for emissions that cannot be directly reduced. Hence, this agreement is essential, positioning C-Zero and its clientele at the forefront of this new, promising, and evolving opportunity.
