Drax Group, a leading renewable energy company, and Pathway Energy LLC, a bioenergy firm, have announced a multi-year agreement to build a large-scale sustainable aviation fuel (SAF) plant. The new facility, to be located on the US Gulf Coast, will significantly reduce carbon emissions from the aviation industry.

Under the terms of the agreement, Drax will supply over 1 million tonnes of sustainable biomass pellets annually to fuel Pathway Energy's SAF production. Drax is also considering a potential investment of up to $10 million in the project.

The SAF plant will incorporate carbon capture and storage (CCS) technology, known as BECCS, to remove approximately 1.9 million tonnes of carbon dioxide each year. By combining biomass with CCS, the plant will produce net-negative jet fuel, effectively removing carbon from the atmosphere.

With an annual production capacity of 30 million gallons, the plant is expected to power around 5,000 long-haul flights. The International Air Transport Association (IATA) estimates that SAF could contribute up to 65% of the emissions reductions needed to achieve net-zero aviation by 2050.

"This partnership is a major step forward in our efforts to decarbonize the aviation industry," said CEO of Drax. "By combining our expertise in biomass and sustainable energy with Pathway Energy's innovative technology, we can create a more sustainable future for aviation."

Pathway Energy plans to begin front-end engineering design shortly, with construction of the $2 billion plant set to start in early 2026. Commercial production is expected to commence in 2029.