Partnership forged with British Steel for multi-billion pound carbon capture project
Drax has signed an agreement with British Steel to explore opportunities for its steel to be used to build the world’s largest multi-billion pound carbon capture project at its power station in North Yorkshire.
The signing of a Memorandum of Understanding (MoU) is intended to support the development of bioenergy with carbon capture and storage (BECCS) technology.
Will Gardiner, Drax Group CEO, said: “We are excited to be partnering with British Steel as we continue to progress our world-leading UK BECCS project.
“This country has a once in a lifetime opportunity to lead the world in vital new green technologies like BECCS, which will not only support thousands of UK jobs, but could also create new export opportunities, whilst helping to tackle the climate crisis.
“We aim to invest billions of pounds, create tens of thousands of jobs and have BECCS operational in the UK by 2030, provided that the UK Government has in place policies to support the feasibility and delivery of negative emissions technologies.
“BECCS will permanently remove millions of tonnes of carbon dioxide from the atmosphere every year from as soon as 2027, whilst continuing to generate the reliable, renewable power this country needs.”
Drax says it is ready to invest around £2bn in its plans to build BECCS in the UK.
Work could get underway as soon as 2024, with the energy company planning to source up to 80% of the materials and services it needs for the project from British businesses.
Around 13,000 tonnes of steel will be required for the major infrastructure project, including beams produced at British Steel’s Scunthorpe and Teesside steel works.
Allan Bell, British Steel’s chief commercial and procurement officer, said: “We are proud to be working with Drax to explore the opportunities this major infrastructure project creates both in terms of the use of our steel products but also in developing skills in the steel supply chain required to support the development of CCUS expertise within the UK.
“We’re already making progress in our own decarbonisation journey, with our plans to use green hydrogen and our commitment to be net zero by 2050. There are real synergies between what we’re trying to achieve and Drax’s ambitions with BECCS.”
Holly Mumby-Croft MP, Member of Parliament for Scunthorpe, said the agreement between Drax and British Steel is positive news for Scunthorpe.
She added: “I’ve long said we should be using British steel in British infrastructure projects not only because we should be supporting our local businesses, but because it’s also the best.
“I look forward to seeing the outcome of this partnership and the benefits it will bring to Scunthorpe, protecting jobs and supporting energy security.”
The deal follows the announcement earlier this week that British Steel would benefit from a £80m game changing investment in new technology in order as the CEO said it would power the business ” towards a sustainable future”.
