Drax and Pathway Energy Partner to Launch New US SAF Plants

Drax Group, a well-known renewable energy company based in the UK, has teamed up with Pathway Energy LLC, a carbon-negative energy firm, in an ambitious multi-year agreement.

This collaboration sets the stage for Drax to supply over one million tons of sustainable biomass pellets each year to Pathway’s planned sustainable aviation fuel (SAF) plant on the US Gulf Coast.

This initiative represents a major step toward decarbonizing the aviation industry.

In addition to the biomass supply, Drax might take on a strategic partnership role in the project.

This could involve a convertible loan note investment of up to $10 million, though no final investment decision has been made yet.

Both companies are heavily focused on advancing bioenergy with carbon capture and storage (BECCS), a cutting-edge technology that removes carbon dioxide from the atmosphere while generating renewable energy.

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BECCS Integration at the Port Arthur Facility

Pathway’s SAF plant, located in Port Arthur, Texas, will incorporate a BECCS system designed to eliminate 1.9 million metric tons of CO2 annually.

This system will simultaneously power the SAF facility and ensure the carbon-negative status of the jet fuel it produces.

According to the International Air Transport Association (IATA), SAF is projected to account for 65% of the emissions reductions needed for the aviation sector to hit net-zero emissions by 2050.

The plant’s production capacity is impressive, with plans to generate 30 million gallons of SAF per year — enough to fuel around 5,000 long-haul flights annually.

Pathway will soon begin Front-End Engineering Design, aiming to start construction in early 2026. Commercial production of SAF is expected to begin in 2029.

Expanding Collaboration Between Drax and Pathway

Looking beyond the initial plant, Drax could potentially supply biomass for two additional Pathway projects.

This would involve providing an extra two million tons of sustainable pellets annually throughout the 2030s.

This extended partnership underscores the shared commitment of both companies to reducing industrial carbon footprints on a global scale.

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Driving Innovation in Sustainable Aviation Fuel

Will Gardiner, Drax Group CEO, highlighted the importance of this agreement: “This landmark deal has the potential to be the biggest third-party supply arrangement Drax’s pellet business has made. Demand for sustainable biomass is accelerating, with international businesses seeking long-term fuel supplies for a range of projects globally—including sustainable aviation fuel and bioenergy with carbon capture and storage.”

The collaboration aligns with Drax’s broader strategy to expand its reach and impact in renewable energy markets worldwide.

Pathway’s efforts to create carbon-negative SAF plants further complement Drax’s expertise in biomass production and supply.

Pathway’s Vision for Decarbonizing Aviation

Steve Roberts, CEO and Founder of Pathway Energy, emphasized the partnership’s innovative nature: “This innovative agreement catalyzes our aligned commitment with Drax to decarbonize the aviation industry and establishes the strategic alignment with Drax to deploy additional projects leveraging proven biomass conversion technologies, sustainable biomass feedstock, and carbon capture and sequestration. With a global scale supply of CORSIA-compliant biomass material, we are well-poised to address one of the hardest-to-abate industrial sectors through the production of carbon-negative sustainable aviation fuels.”

Why SAF Matters

Sustainable aviation fuel is widely recognized as a critical solution for reducing the aviation industry’s carbon emissions.

Unlike traditional jet fuels, SAF can significantly lower greenhouse gas emissions across its lifecycle.

The integration of BECCS technology further amplifies these benefits by actively removing CO2 from the atmosphere.

Pathway’s SAF plant will not only meet stringent environmental standards but also set a precedent for future projects in the sector.

The focus on carbon-negative fuel production highlights a forward-thinking approach to tackling climate change.

Looking Ahead

As the partnership between Drax and Pathway evolves, the potential for scaling up biomass supply to support additional SAF projects signals a promising future.

The collaboration serves as a model for how private companies can align resources and expertise to drive meaningful progress in sustainability.

Through this agreement, Drax and Pathway Energy are not just contributing to the decarbonization of aviation—they’re pioneering the integration of innovative technologies and sustainable practices that could redefine how industries approach carbon reduction.

Learn more about Drax Group and Pathway Energy to stay updated on this groundbreaking partnership.