Drax Applauds Canada's Budget Commitment to Biomass and Clean Energy Investments

VANCOUVER, British Columbia, April 06, 2023 (GLOBE NEWSWIRE) -- Drax, a leading producer and supplier of sustainable biomass, commends the Government of Canada on its recent Budget 2023 plan that supports significant investments in clean energy technologies and the need for biomass to achieve a clean economy.

The Budget 2023 plan specifically highlights biomass as a key component of the clean energy sector, acknowledging its potential to reduce reliance on diesel fuel in rural and remote Indigenous communities. The government has also pledged to engage with the biofuels industry to explore opportunities for growth, including examining support mechanisms for low-emissions fuels.

"We are excited by the Canadian government's commitment to clean energy and the recognition of biomass as a crucial component in achieving a cleaner future," said Will Gardiner, CEO of Drax. "Biomass is a win-win for Canada as it is not only viewed by leading scientists as a dispatchable, renewable fuel source in the fight against climate change, it also supports thousands of Canadian jobs and contributes millions to local economies."

Drax has invested over $830 million in the Canadian forestry sector, supporting more than 10,000 jobs and contributing $1.1 billion to the nation's GDP in 2021. The company utilizes 81% sawmill residues to produce biomass pellets, with the remainder consisting of material collected from harvest residuals and low-grade wood, such as tops and branches, low-quality trees or parts that are diseased or misshapen. The market for low-grade wood helps improve the health and productivity of forests while reducing wildfire risks and disease.

"We look forward to working closely with the Canadian government to further advance the biomass industry and opportunities for forest workers, including through meaningful partnerships with First Nations communities and businesses," said Gardiner.

Budget 2023 also calls for the allocation of $500 million to the Strategic Innovation Fund to support the development and application of clean technologies in Canada. Additionally, the fund will direct up to $1.5 billion of its existing resources towards projects in sectors including clean technologies, critical minerals and industrial transformation.

Drax has a goal is to become the global leader in carbon removals by deploying bioenergy carbon capture and storage (BECCS). This includes building large scale carbon removal facilities, creating thousands of jobs in new clean energy technology and generating dispatchable, renewable power for homes and industries ? while supporting the growth of the forestry sector and other intermittent energy sources.

"Drax stands ready to support Government on the development of a technology-inclusive approach to the carbon contracts for difference announced in Budget 2023," said Gardiner. "Appropriate policy mechanisms are critical to incentivise investment in carbon dioxide removal technologies like BECCS, and we welcome this positive step to develop a BECCS industry in Canada."

Media contact:

Caroline Bleay
Communications Manager
Drax
E: [email protected]
T: 778-897-1712

About Drax

Drax Group's purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.

Drax's around 3,000 employees operate across three principal areas of activity ? electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com/ca.