Drax in deal with British Steel to supply 13,000 tonnes of steel to its carbon capture project

Drax said it wants to source up to 80 per cent of the materials and services it needs to develop its bioenergy with carbon capture and storage (BECCS) project from British businesses.

If it gets off the ground Drax added it would serve in protecting and creating thousands of jobs, helping to level up the North

The signing of a Memorandum of Understanding (MoU) brings together two major British industries to support the development of bioenergy with carbon capture and storage (BECCS), a technology which could kickstart a whole new sector of the economy and create opportunities for the UK to lead the world in a vital technology required to address global warming.

Through the partnership, Drax and British Steel aim to support efforts to meet the UK’s climate targets and level up the North, whilst supporting skills within the steel sector.

Will Gardiner, Drax Group CEO said: “We are excited to be partnering with British Steel as we continue to progress our world-leading UK BECCS project. This country has a once in a lifetime opportunity to lead the world in vital new green technologies like BECCS, which will not only support thousands of UK jobs, but could also create new export opportunities, whilst helping to tackle the climate crisis.

“We aim to invest billions of pounds, create tens of thousands of jobs and have BECCS operational in the UK by 2030, provided that the UK Government has in place policies to support the feasibility and delivery of negative emissions technologies. BECCS will permanently remove millions of tonnes of carbon dioxide from the atmosphere every year from as soon as 2027, whilst continuing to generate the reliable, renewable power this country needs.”

BECCS is a critical technology needed to combat global warming because it permanently removes carbon dioxide from the atmosphere whilst also generating reliable, renewable electricity.

Drax is ready to invest around £2bn in its plans to build BECCS in the UK. Work could get underway as soon as 2024.

Around 13,000 tonnes of steel will be required for the major infrastructure project, including beams produced at British Steel’s Scunthorpe and Teesside steel works.

Allan Bell, British Steel’s Chief Commercial and Procurement Officer, said: “We are proud to be working with Drax to explore the opportunities this major infrastructure project creates both in terms of the use of our steel products but also in developing skills in the steel supply chain required to support the development of CCUS expertise within the UK.

“There are real synergies between what we’re trying to achieve and Drax’s ambitions with BECCS, which we hope to build on through this partnership, putting the UK and the North of England on the world map.”

Holly Mumby-Croft MP, Member of Parliament for Scunthorpe, said: “I was delighted to hear that Drax and British Steel had reached this agreement, it’s some really positive news for Scunthorpe.”