UK power plant operator Drax has announced its plans to launch a new carbon capture business headquartered in Houston, Texas.
The new business is said to operate separately within the Drax Group and will be set up with the intention of expanding the group’s stake in low-emissions energy technologies.
Although the new entity has not yet been formally launched, Drax has already settled on who will be leading it — senior energy infrastructure expert Laurie Fitzmaurice.
Drax CEO William Gardiner said: “The new entity will bring focus and will scale the company’s ability to deliver carbon removals to organisations looking to reduce their carbon footprints. Delivering the ambitious targets will see the new entity become a leader in the growing carbon trading market.”
This announcement comes shortly after a major milestone for the company, as it was granted approval by the UK Government for its planned carbon capture and storage (CCS) project at the company’s biomass power plant in North Yorkshire, UK.
The project is expected to cost energy bill payers roughly £40 billion (~$51 billion) over the next 25 years.
Drax also made headlines this week as the company came under fire after a report released from public spending watchdog the National Audit Office (NAO) on its biomass spending.
The report says that the UK government, which has paid over £20 billion (~$25.4 billion) on business development and biomass energy usage, cannot prove that “its approach to making sure generators comply with its sustainability requirements is adequate”.