Drax has agreed heads of terms to supply a sustainable aviation fuel (SAF) production facility in the US with sustainable woody biomass. The deal will be for up to 1m tonnes of pellets to be supplied to Pathway Energy annually under a multi-year deal. Commercial SAF production is expected to commence in 2029 and there is potential for Drax to supply biomass to two additional Pathway projects for similar volumes in the 2030s. This potential deal supports Drax’s long-term pellet production targets, aiming for 8Mt of pellet production by 2030, depending on UK BECCS policy.
