The carbon removal industry has a new major player after unveiling of Elimini – a US-based company that kicks off with a slew of deals with investors, suppliers and offtakers.
The new company aims to address the growing need for continuous renewable energy and large-scale carbon removal by advancing BECCS in the United States and globally.
Since most viable strategies to limit global warming to 1.5°C require gigaton-scale carbon removal and a tripling of renewable energy capacity, BECCS stands out as the only technology that can achieve both goals simultaneously.
Elimini has already selected a lead site for its first greenfield BECCS project and construction work is already underway. The company is a wholly owned subsidiary of Drax Group and will be independently operated, allowing it to also sell carbon credits originating from Drax Power Station, the Group’s first BECCS pilot plant.
“Carbon removals are desperately needed to reverse the legacy emissions warming our planet – and that industry represents more than a $1 trillion opportunity once it reaches gigaton scale,” said Elimini Executive Chair and Drax Group CEO Will Gardiner. “Elimini will have the focus and agility needed to become a leader in the maturing carbon market, rapidly advancing high-quality carbon removals and renewable energy production at global scale.”
Setting the foundations
Elimini begins its journey with a substantial number of partners, investors and suppliers already onboarded. Offtake agreements for carbon removal credits have been struck with Ultrabulk, Holborn Trading, Karbon-X and ClimateTrade, as well as C-Zero Markets.
Suppliers Manullife, Investment Management and Molpus Woodlands have signed options to provide sustainably sourced woody biomass to fuel Elimini’s BECCS operations in the US Southeast.
The new carbon removals company has also placed a strong emphasis on establishing knowledge partnerships that will support its ongoing innovation efforts. The University of Texas and University of Houston will be the partners when it comes to carbon management, while support will be provided to student-focused program Mission Innovation, SMART CDR competition and the Arthur Temple College of Forestry and Agriculture scholarships for forestry students.
The company has also established an advisory council with representatives from a broad spectrum of stakeholders in the carbon removal industry, with the group set to steer Elimini forward. Among them we see the names of David Hill, former General Counsel to the DOE, Miranda Ballentine, Founding CEO of the Clean Energy Buyers Association, Melissa Lott, Professor at Columbia Climate School, Freddie Davis, Director of Rural Training and Research Center at the Federation of Southern Cooperatives and Rajiv S. Joshi, Founder of Bridging Ventures and former Executive Director of Global Call to Action Against Poverty.
DNV validates BECCS methodology
In a sign of broader development for BECCS, DNV, a leading expert in energy and assurance, approved a new methodology for certifying net carbon dioxide removals achieved through bioenergy with CCS. This validation, adopted by Elimini and developed in collaboration with Drax and Stockholm Exergi, marks a significant milestone that will aid in the deployment of the technology.
The comprehensive methodology establishes a rigorous framework ensuring the quality and sustainability of BECCS carbon dioxide removals. This supports the development of best-practice standards in measuring, reporting, and verifying these removals, giving corporate buyers much-needed assurance that their purchased BECCS credits provide real climate benefit.
As more and more global authorities recognize BECCS as essential to mitigating climate change, DNV’s endorsement is crucial for scaling the market for high-integrity CDR credits.
BECCS growth in 2024
BECCS dominated the conversation in high-volume carbon removal purchases in 2024. In Q2, BECCS accounted for 90% of all transactions by volume, and 63% of all deals done to date, according to data from CDR.fyi.
In Q2 2024 alone, BECCS contributed 4.3 million tonnes of the total 4.8 million tonnes of durable CDR transactions, solidifying its leadership in the sector. Other technologies included direct air capture and biochar transactions.
What is BECCS used for?
Bioenergy with carbon capture and storage (BECCS) captures carbon dioxide during the conversion of biomass into energy or fuel, before storing it permanently underground. By removing CO2 from the biogenic carbon cycle, at industrial scale, BECCS can significantly contribute to international targets to reduce atmospheric CO2 levels – while supporting surging demand for power.
BECCS begins with well managed forests. These forests absorb CO2 from the atmosphere as they grow and are integral for industries like construction and the creation of solid wood products. Thinnings from managing the healthy forests, low-grade roundwood and sawmill residues can all be used as sustainably sourced biomass.
In the BECCS process, the CO2 is removed, rather than being released back into the atmosphere. It’s separated from the biomass and eventually stored deep underground – safely, sustainably and permanently. From this process, carbon credits can be produced and used to evidence a net carbon removal, helping industries like aviation, shipping and manufacturing to decarbonize.
BECCS is the only carbon removal technology that also produces reliable 24/7 renewable power. In a world where transport electrification and data centers are driving huge demand for baseload power, we need more renewable electricity than ever before. BECCS helps to lower CO2 levels, while keeping the lights on.
What is the difference between CCS and BECCS?
Carbon capture and storage (CCS) and Bioenergy with CCS (BECCS) are different technological approaches to reducing atmospheric CO2. While carbon capture is used in the energy industry and hard-to-abate industries like steel, glass and paper, BECCS is focused on power plants that use biomass as their fuel source though it can be co-located with heavy industry which Elimini plans to do.
The other important difference is that CCS can only achieve a reduction of CO2, while BECCS has the potential to have a net negative effect and remove more CO2 than it generates, even though both use point source capture as part of their process.
What is the difference between BECCS and biochar?
Biochar and BECCS share several common threads like relying on biomass and removing carbon but have a number of differences.
The first thing that has to be pointed out is that beside their contribution to carbon removal, the goal of BECCS is to produce energy, while biochar aims to enrich the soil and improve farming.
They also operate at different scales with BECCS having a clear advantage at this point in time, with the ability to be harnessed at large-scale power plants that are already in operation.
They also sequester CO2 in different ways. The end destination for CO2 removed with BECCS are underground formations to which the greenhouse gas is transported for theoretically permanent storage, while biochar generated from pyrolysis is stored in the soil where it enhances its properties and acts as a carbon sink for hundreds or thousands of years.
Why is this the right time to invest in BECCS?
The push and pull between three forces is shaping today’s energy landscape. One of them is the drive to decarbonize, another is energy security, and last but not least – growing power demand both in developing and developed countries (with the latter seeing a jump in energy consumption for AI). With all three forces exuding different levels of influence, this could be one of the best times to make an investment in BECCS.
The IEA has previously stated that it sees a vital role for the technology in achieving the decarbonization of industries like aviation, transportation and hard-to-abate sectors by 2050. Elimini enters the market at a crucial time for the planet and the global economy, offering BECCS as a dual solution that helps organizations and governments meet their growing energy needs and simultaneously fulfilling their climate pledges.
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