Drax ‘encouraged’ by biomass tech inclusion in Canada’s economic statement: CEO
November 27, 2023
By Drax Group
Drax commends the Government of Canada on the inclusion of biomass-using technologies in the Clean Technology and Clean Electricity Investment Tax Credits from the Fall Economic Statement (FES).
Biomass is a key component of the clean energy sector with the potential to reduce reliance on diesel fuel in rural and remote communities. It is a proven dispatchable, renewable fuel source in the fight against climate change, further supporting thousands of Canadian jobs and contributing millions to local economies and an important player in a broad spectrum of technologies needed to achieve net zero.
“We are encouraged by the Canadian government’s commitment to clean energy and the recognition of biomass-used technologies as a crucial component in achieving a cleaner future,” said Will Gardiner, CEO of Drax. “Leading climate bodies and scientists agree that biomass has an important role to play in climate mitigation – as a sustainable feedstock, as a renewable energy resource, and as a carbon removals technology through bioenergy with carbon capture and storage (BECCS).”
Sustainably sourced biomass is renewable and provides reliable, flexible generation that enables technologies such as wind and solar, to connect to the grid. Sustainable biomass also supports a vital carbon-negative emissions technology (BECCS) which will be needed around the world to meet climate commitments.
“Working on both sides of the Atlantic, Drax is focused on enabling a zero-carbon, lower-cost energy future,” said Gardiner. “Drax’s ambition is to be the world’s leading provider of carbon removals through BECCS.”
BECCS is vital to energy security. Drax’s ambition through BECCS is building large-scale carbon removal facilities, creating thousands of jobs in new clean energy technology and generating dispatchable, renewable power using sustainably sourced biomass for homes and industries – while supporting the growth of the forestry sector and other intermittent energy sources.
With the right policy framework, and further announcements such as the one in the FES, Drax believes that Canada could be an ideal location to deploy BECCS, given its access to one of the world’s greatest fibre baskets, well-established sustainable forestry sector, and suitable geology for CO2 storage.
“Supporting BECCS deployment in Canada would kick start a whole new sector of the economy, creating green growth on an even greater scale, creating additional jobs, and investing in rural economies unlike what we have previously seen,” said Gardiner.
In Canada, Drax has invested over $830 million in the Canadian forestry sector, supporting more than 10,000 jobs and contributing $1.1 billion to the nation’s GDP in 2021.
Drax looks forward to working closely with the Canadian government to advance the biomass industry further and create opportunities for forest workers, including through meaningful partnerships with First Nations communities and businesses.
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