Q&A Profile A commitment to Canada An inside look at Drax Group’s future plans for Canada and beyond By Ellen Cools n April 2021, Drax Group acquired Pinnacle Renewable Energy, becoming a major player in Canada. Since then, the company has announced plans to double pellet production capacity and in-crease the amount of pellets it sells to third parties. In a Q&A with Canadian Biomass , Drax Group’s executive vice-president Matt White shares some insights about the company’s plans for Canada and beyond. I success as we implement our strategy, which is aligned with the expected growth in the global market for sus-tainable biomass and development of our own plans to deliver BECCS in the UK and internationally by 2030. In December, Drax announced plans to double pellet production capacity by 2030. How does the company intend to meet this goal? Drax’s plans to double pellet production capacity to eight million tonnes (Mt) by 2030 are already underway Canadian Biomass : What was the motivation – we’re commissioning a new pellet plant in Demopo-behind acquiring Pinnacle Renewable Energy? lis, Ala., (one of the Pinnacle projects we acquired last Matt White: The acquisition of Pinnacle last year was Drax Group’s executive vice-pres-year) and a smaller satellite plant in Arkansas with more transformational for Drax. It more than doubled our ident Matt White. Photo courtesy satellite plants in development. These, alongside other biomass production capacity, significantly reduced our Drax Group. developments and expansions, will take us to close to cost of production and added a major biomass supply five Mt once complete. We’re also developing a pipeline of projects business underpinned by long-term contracts with counterparties including new build and capacity expansions at existing projects, in Asia and Europe. Drax is now the world’s leading sustainable bio-principally focused in North America, and we expect to take a final mass generation and supply business and is well placed to meet an investment decision this year on up to one Mt of new capacity. expected global increase in biomass demand and play a critical role in helping countries meet net zero. Some environmentalists claim wood pellets aren’t a sustain-The Pinnacle acquisition also supports our plans to use bio-able alternative to fossil fuels. What is Drax’s response to that? energy with carbon capture and storage (BECCS) and become a The leading authority on climate science, the United Nation’s Inter-carbon negative company by 2030 – permanently removing mil-governmental Panel on Climate Change (IPCC), is absolutely clear lions of tonnes of carbon dioxide from the atmosphere each year. that sustainable biomass is crucial to achieving global climate tar-gets, both as a provider of renewable power and through its poten-What has the response been from local communities? tial to deliver negative emissions with carbon capture and storage. Drax is committed to supporting the communities where we op-The science underpinning carbon accounting for bioenergy is erate by promoting sustainable forestry and investing in local eco-also crystal clear and was recently reaffirmed by the IPCC in 2019 nomic development, including job creation, and we already have following review by tens of thousands of the world’s scientists. a proven track record of doing just that. We have a long history Drax’s sustainable wood pellets are made from waste fibre – in-of supporting the communities in which we operate and our ap-cluding sawmill and harvesting residues – which would otherwise proach in Canada will be no different. have been burned, landfilled or left to rot. Using this biogenic waste Since buying Pinnacle, we have been engaging with First Na-to generate renewable electricity displaces fossil fuels from the ener-tions, local communities, the provincial governments and other gy system. By adding carbon capture and storage, as we plan to do stakeholders and will continue to do so to ensure that our activities with BECCS, we will permanently remove carbon dioxide from the benefit the people and environment where we operate. atmosphere and deliver millions of tonnes of negative emissions, It’s been a very challenging year for Canadians, especially in which the UN’s IPCC has said is essential to reaching net zero. British Columbia, where communities have had to face floods and wildfires on top of the continued difficulties of COVID-19. Drax Drax also plans to double the amount of pellets it sells to has donated $100,000 to communities impacted by these natural third parties by 2030, with a focus on Asia and Europe. Why disasters to help them get through these hard times. has Drax chosen to focus on those markets? We see lots of opportunities in these regions in the years ahead as What are Drax’s plans for the future in Canada? demand for sustainable biomass in markets in Asia and Europe is Drax has already made good progress integrating Pinnacle since expected to increase in the transition away from coal to meet climate the acquisition in April and we’re planning a rebrand for the first targets. Japan is closing seven gigawatts of coal power over the next half of 2022. A united Drax brand best positions us for long-term 16 Canadian BIOMASS WINTER 2022
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