Drax Group is set to construct two new bioenergy plants with carbon capture and storage (BECCS) in the US, following months of consideration over where its investment should be placed.
The company will invest around £7bn (€8bn) in BECCS projects between 2024 and 2030. Of this figure, £3bn (€3.4bn) is being earmarked for Drax's existing biomass plant in Yorkshire, UK.
Two initial sites in the US South have been selected and are progressing to option, although the precise details remain commercially sensitive, according to Drax.
However, it said it aims to locate new plants in regions which are closer to sources of sustainable biomass and T&S systems to permanently store CO2.
Nine further sites are also being evaluated for BECCS in the US, said Drax, due to the "supportive investment environment created by the Inflation Reduction Act" - a major stimulus package that provides subsidies for green investments in the US.
“This is expected to significantly reduce the operating cost of new-build BECCS compared to retrofit, as well as carbon emissions in the supply chain,” Drax said.
Drax also said its £150m (€172.2m) share buyback scheme will likely be completed by the end of this year.