Southern timber owners could benefit from plan to create electricity and carbon credits by burning wood chips

The U.S. Pine Belt is filled with fast-growing Loblolly
pines. (Reddit map)

 

United Kingdom power producer Drax is scouting locations in America's Pine Belt to "build electricity generators fueled by burning wood chips," reports Ryan Dezember of The Wall Street Journal. "The plants’ exhaust will be piped underground instead of out of smokestacks, which generates lucrative carbon credits for which Drax is already lining up buyers." The company plans to sell its electricity to data center companies looking to fuel their artificial intelligence operations.

The plan could be an economic game changer for the U.S. South "where pulp and paper mills have closed and left timber growers without buyers for those trees unfit for making lumber or poles," Dezember explains. "Biomass power has long been dangled before Southern timberland owners as a potential solution to the glut of pine that has depressed prices and complicated harvests."

Drax's UK facility "burns pellets of compressed sawdust in a converted coal-fueled power plant," which fuels roughly 5% of the country's electricity. It already runs several U.S. pellet mills that fuel its UK operation, Dezember writes. The planned U.S. plant will be a BECCS, short for bioenergy with carbon capture and storage. The company plans to provide 24/7 renewable energy for AI data centers.

Drax is pinpointing locations that have all the elements it needs, which include a "confluence of carbon dioxide pipelines, pine plantations and a short wait to connect to the grid," Dezember reports. "It has options on properties and expects to announce a location for the first plant in 2025."

The company has sought timber managers who will manage forests without stressing their ecosystems, and it "plans to buy wood only from properties managed for timber production, not old-growth stands," Dezember explains. "Nor will the plants need the wood to be ground down to dust and pressed into pellets, which are made to facilitate ocean shipping. The U.S. power plants will only need the wood chipped into small pieces."