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Drax's ANDRITZ Deal Exposes BECCS's Hidden Challenge

Published by Todd Bush on January 23, 2026

While direct air capture dominates headlines, a quieter crisis is unfolding in the bioenergy with carbon capture and storage (BECCS) space. Sourcing enough biomass feedstock to power these projects at scale is becoming the industry's most pressing bottleneck. A new multi-year supply agreement between Drax and ANDRITZ highlights just how critical supply chain reliability has become.

The deal, announced in January 2025, positions ANDRITZ as the sole supplier of wear parts for Drax's biomass pellet production facilities across North America through September 2029. It may sound like routine procurement, but it signals something bigger: BECCS developers are locking down their supply chains years in advance to avoid costly disruptions.

wood pellet biomass storage facility conveyor belts

>> In Other News: CAAS, SAFCo and Nine Companies Launch Singapore’s First Voluntary Sustainable Aviation Fuel Procurement Trial

Why Biomass Supply Chains Matter Now

BECCS technology relies on a steady flow of wood pellets and organic feedstock to generate energy while capturing carbon. Unlike direct air capture, which pulls CO2 directly from the atmosphere, BECCS requires massive volumes of physical material, from harvesting and processing to transportation and storage. Each step introduces potential failure points.

Matt White

"Partnering with ANDRITZ allows us to streamline operations and focus on strategic initiatives that drive sustainability and growth. Their commitment to regional service and quality aligns perfectly with our goals."

Matt White, Executive Vice-President of North America, Drax

The International Energy Agency has identified BECCS as essential for meeting global decarbonization targets by 2050. Yet according to the IEA's CCUS database, current operational BECCS capacity captures only around 2 million tonnes of CO2 annually, a fraction of what climate models require.

Key Facts: The Drax-ANDRITZ Agreement

  • Duration: Multi-year agreement through September 2029
  • Scope: Sole supplier of wear parts for all North American pellet facilities
  • New Infrastructure: ANDRITZ service center in Ruston, Louisiana and die production plant in Windsor, Ontario
  • Impact: Shortened delivery times and reduced transport-related emissions
  • Goal: Ensure uninterrupted operations and optimized pellet plant performance

>> RELATED: UK's Drax Eyes U.S. for Bioenergy CCS Expansion

The Supply Chain Challenges BECCS Must Overcome

According to research from the Energy Futures Initiative, the United States currently consumes approximately 360 million dry metric tonnes of plant-derived feedstocks annually for bioenergy. Scaling BECCS to climate-relevant levels would require doubling or tripling that volume.

agricultural biomass feedstock piles industrial

The hurdles are significant:

  1. Geographic dispersion: Biomass sources are rarely co-located with conversion facilities or carbon storage sites
  2. Processing infrastructure: Pre-processing depots and flexible supply chains are not yet mature
  3. Quality consistency: Feedstock variability in moisture, particle size, and ash content creates operational challenges
  4. Logistics complexity: Transportation of bulky, low-density biomass adds cost and emissions

Drax's Broader Play in Carbon Removal

The ANDRITZ partnership fits into Drax's larger ambitions. The company is progressing options for carbon removal using BECCS technology both in the UK and globally. In 2024, Drax launched Elimini, a US-based subsidiary focused on delivering carbon removals at megaton scale.

Dan Lundt

"This agreement reflects the trust Drax places in our expertise. Our investments in new facilities like Ruston and Windsor ensure that we can serve customers across North America quickly and reliably."

Dan Lundt, Vice President of North America, ANDRITZ Feed & Biofuel

Drax has also reached heads of terms with Pathway Energy for what could become its largest third-party biomass supply deal. That agreement would see Drax supply over 1 million tonnes of sustainable pellets annually for a proposed sustainable aviation fuel plant on the US Gulf Coast.

BECCS vs. DAC Comparison BECCS Direct Air Capture
Primary Input Biomass feedstock Ambient air
Energy Output Yes, generates power No, requires energy
Supply Chain Complexity High Lower
Current Global Capacity ~2 Mt CO2/year ~10,000 tonnes/year

A Foundation for What Comes Next

The USDA released a comprehensive plan in March 2024 titled "Building a Resilient Biomass Supply," identifying bottlenecks in getting feedstock to market at scale. The report called for improved logistics, materials handling technology, and farmer incentives to close the gap between available resources and industry demand.

For Drax, the ANDRITZ deal is one piece of a larger puzzle. By securing reliable equipment supply and investing in regional service infrastructure, the company is betting that operational excellence will be just as important as capture technology itself. In a sector racing to scale, the companies that master their supply chains may ultimately determine whether BECCS fulfills its climate potential.

As the carbon removal market matures, expect more announcements like this one, where the unsexy work of supply chain optimization becomes the foundation for climate-scale impact.

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