
Port Arthur, TX – UK-based renewable energy leader Drax Group has announced a groundbreaking agreement with Pathway Energy LLC to supply over 1 million tonnes of sustainable biomass pellets annually for Pathway’s planned sustainable aviation fuel (SAF) facility in Texas. The $2 billion plant, expected to commence production in 2029, will produce 30 million gallons of carbon-negative jet fuel per year, equivalent to powering 5,000 long-haul flights with carbon-neutral fuel blends.
The deal represents a significant step for both companies in advancing the decarbonization of aviation. Will Gardiner, CEO of Drax, said the agreement reflects the growing demand for sustainable solutions in aviation: “Reaching heads of terms on this deal with Pathway is an important step in the energy transition and for decarbonising the aviation sector through sustainable aviation fuel production.”
The agreement includes a potential investment of up to $10 million by Drax through a convertible loan note, which could pave the way for the company to become a strategic partner in Pathway’s SAF facility. The partnership could expand further, with Drax potentially supplying biomass to two additional Pathway projects in the 2030s, increasing its annual supply to 3 million tonnes of biomass pellets.
“Demand for sustainable biomass is accelerating, with businesses seeking long-term fuel supplies for projects globally.” – Will Gardiner, CEO, Drax Group
Pathway’s Port Arthur facility will incorporate bioenergy with carbon capture and storage (BECCS) technology, projected to remove 1.9 million tonnes of CO2 annually. This ensures that the SAF produced is not only carbon-neutral but also carbon-negative. Steve Roberts, CEO of Pathway Energy, highlighted the transformative potential of the project: “This agreement establishes the strategic alignment with Drax to deploy additional projects leveraging proven biomass conversion technologies, sustainable feedstock, and carbon capture and sequestration.”
Construction of the facility is scheduled to begin in early 2026 following the completion of Front End Engineering Design. The collaboration highlights the aviation industry’s need for rapid SAF scale-up to meet net-zero emissions by 2050, with SAF expected to contribute 65% of emissions reductions according to IATA. Drax’s supply of sustainable biomass pellets, sourced from its extensive North American operations, supports this critical trajectory while addressing global SAF demand.