Drax Group and Pathway Energy LLC have signed heads of terms for a multi-year deal involving the supply of over 1 million tonnes of sustainable biomass pellets annually for Pathway’s $2 billion sustainable aviation fuel (SAF) plant in Port Arthur, Texas. The agreement, which positions Drax as a potential strategic partner with a convertible loan note option of up to $10 million, aims to meet increasing global SAF demand and contribute to decarbonizing the aviation sector. These details were confirmed by the companies.
Pathway's SAF facility, once operational in 2029, is expected to produce 30 million gallons of carbon-negative jet fuel per year, sufficient for 5,000 carbon-neutral long-haul flights annually. Plans also include integrating bioenergy with carbon capture and storage (BECCS) technology, targeting the removal of 1.9 million tonnes of CO2 from the atmosphere yearly, further solidifying its carbon-negative status.
Both companies envision expanding their collaboration, with Drax potentially supplying an additional 2 million tonnes of biomass annually for future Pathway projects through the 2030s.
