Published 26th May 2023, 06:00 BST

The energy giant based in North Yorkshire said in a market statement that it has selected two sites for its bioenergy with carbon capture and storage (BECCS) technology in the US, as well as nine additional sites in the country.

It currently uses biomass power plants to burn pellets made from organic materials such as wood and sawdust in order to generate electricity, with the hope that its BECCS project could also remove carbon dioxide from the process.

The company also announced that it is establishing a headquarters for the rollout of the technology in Houston, Texas, as well as hiring 80 employees across North America.

National Grid and Shell have pulled out of plans to develop new pipelines for carbon capture and storage, which are set to begin at Drax's North Yorkshire site.

This could see Drax invest $4 billion on building two new power plants in the south of the country, with the potential for more in the future.

The company noted that the US had created a “supportive investment environment” created by Joe Biden’s Inflation Reduction Act (IRA).

However, Drax said it was still committed to developing its carbon capture project in North Yorkshire with around £3 billion of investment earmarked for the region.

It comes after the company missed out on securing the first round of Government funding for carbon capture projects earlier this year, with Drax warned that it would not get preferential treatment in any future bids for funding.

Will Gardiner, Drax’s CEO, said that discussions with ministers were “very concrete”.

“The key thing we need is certainty around our revenue streams; on the back of that we can make the investment required,” he added.

“The world’s leading climate scientists at the UN’s IPCC are clear – the planet cannot solve the climate crisis without the combination of reliable, renewable electricity and carbon removal technologies.

“Drax is a growing and sustainable, international business providing flexible, renewable energy and carbon removals solutions, via BECCS, which put us at the heart of global efforts to deliver net zero and energy security.

“Our plans to invest billions in critical renewable energy and carbon removal technologies will help to tackle the climate crisis and could create thousands of jobs whilst generating secure, renewable power. This investment is underpinned by our strong operational performance.”

Drax eyes up US investment amid doubts over Yorkshire future