While direct air capture dominates headlines, a quieter crisis is unfolding in the bioenergy with carbon capture and storage (BECCS) space. Sourcing enough biomass feedstock to power these projects at scale is becoming the industry's most pressing bottleneck. A new multi-year supply agreement between Drax and ANDRITZ highlights just how critical supply chain reliability has become.
The deal, announced in January 2025, positions ANDRITZ as the sole supplier of wear parts for Drax's biomass pellet production facilities across North America through September 2029. It may sound like routine procurement, but it signals something bigger: BECCS developers are locking down their supply chains years in advance to avoid costly disruptions.
>> In Other News: CAAS, SAFCo and Nine Companies Launch Singapore’s First Voluntary Sustainable Aviation Fuel Procurement Trial
BECCS technology relies on a steady flow of wood pellets and organic feedstock to generate energy while capturing carbon. Unlike direct air capture, which pulls CO2 directly from the atmosphere, BECCS requires massive volumes of physical material, from harvesting and processing to transportation and storage. Each step introduces potential failure points.
"Partnering with ANDRITZ allows us to streamline operations and focus on strategic initiatives that drive sustainability and growth. Their commitment to regional service and quality aligns perfectly with our goals."
Matt White, Executive Vice-President of North America, Drax
The International Energy Agency has identified BECCS as essential for meeting global decarbonization targets by 2050. Yet according to the IEA's CCUS database, current operational BECCS capacity captures only around 2 million tonnes of CO2 annually, a fraction of what climate models require.
>> RELATED: UK's Drax Eyes U.S. for Bioenergy CCS Expansion
According to research from the Energy Futures Initiative, the United States currently consumes approximately 360 million dry metric tonnes of plant-derived feedstocks annually for bioenergy. Scaling BECCS to climate-relevant levels would require doubling or tripling that volume.
The ANDRITZ partnership fits into Drax's larger ambitions. The company is progressing options for carbon removal using BECCS technology both in the UK and globally. In 2024, Drax launched Elimini, a US-based subsidiary focused on delivering carbon removals at megaton scale.
"This agreement reflects the trust Drax places in our expertise. Our investments in new facilities like Ruston and Windsor ensure that we can serve customers across North America quickly and reliably."
Dan Lundt, Vice President of North America, ANDRITZ Feed & Biofuel
Drax has also reached heads of terms with Pathway Energy for what could become its largest third-party biomass supply deal. That agreement would see Drax supply over 1 million tonnes of sustainable pellets annually for a proposed sustainable aviation fuel plant on the US Gulf Coast.
| BECCS vs. DAC Comparison | BECCS | Direct Air Capture |
|---|---|---|
| Primary Input | Biomass feedstock | Ambient air |
| Energy Output | Yes, generates power | No, requires energy |
| Supply Chain Complexity | High | Lower |
| Current Global Capacity | ~2 Mt CO2/year | ~10,000 tonnes/year |
The USDA released a comprehensive plan in March 2024 titled "Building a Resilient Biomass Supply," identifying bottlenecks in getting feedstock to market at scale. The report called for improved logistics, materials handling technology, and farmer incentives to close the gap between available resources and industry demand.
For Drax, the ANDRITZ deal is one piece of a larger puzzle. By securing reliable equipment supply and investing in regional service infrastructure, the company is betting that operational excellence will be just as important as capture technology itself. In a sector racing to scale, the companies that master their supply chains may ultimately determine whether BECCS fulfills its climate potential.
As the carbon removal market matures, expect more announcements like this one, where the unsexy work of supply chain optimization becomes the foundation for climate-scale impact.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🛫 New US Powerhouse: XCF Global, DevvStream & Southern Merge for SAF Scale ⛏️ Carbon Capture, ‘Rare Earth’ From Coal Among Projects Poised to Get $11.7M in State Grants 🗺️ Ca...
Inside This Issue 🧪 Why Bill Gates Bet $40M on This Carbon Capture Lab ⛏️ Max Power Prepares to Drill Second Natural Hydrogen Well as Program Expands 325 km SW of Lawson Discovery 💰 Trafigura-Back...
Inside This Issue 🚪 Honda Exits Fuel Cell Partnership as Hydrogen Pivots ♻️ A Breakthrough That Turns Exhaust CO2 Into Useful Materials ✈️ FedEx Takes Delivery of SAF at Dallas Fort Worth and New ...
Hydrogen is increasingly becoming a popular energy source because people are appreciating how diverse it is. For instance, hydrogen can be used to generate power for people, whilst it can also be u...
U.S. Energy Corp. (NASDAQ: USEG) (“U.S. Energy” or the “Company”), a growth-oriented energy company advancing a diversified industrial gas, energy, and carbon management platform, today provided a ...
LOS ANGELES, Feb. 4, 2026 /PRNewswire/ -- Southern California Gas Company (SoCalGas), along with San Diego Gas & Electric Company and Southwest Gas Corporation, on Tuesday submitted a petition ...
Commissioning marks a major step in building Europe’s hydrogen backbone, positioning Plug as a key end-to-end solutions provider supporting the scale-up of clean hydrogen infrastructure across the ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.