Drax has today announced a 20-year joint venture agreement with Power Minerals to allow for the development of a factory to process millions of tonnes of legacy ash into Supplementary Cementitious Material (SCM), which is a key ingredient in low carbon green cement.
The new facility will be located next to the Drax Power Station site on land leased from Drax.Under the agreement Power Minerals will construct, own and operate the new facility, whilst Drax will sell its legacy Pulverised Fuel Ash (PFA) to the joint venture as well as provide power to the site, in addition to sharing the profits of the joint venture’s sales of SCM. It believes the project could generate incremental adjusted EBITDA of around £5 million each year post-2027 through to 2046.
Production is expected to begin by the end of 2026, with the factory having an expected initial annual production capacity of 400,000 tonnes.
The production of cement contributes around 8% of global CO2 emissions annually. Over the duration of the project, Power Minerals estimates the utilisation of PFA from Drax can reduce emissions of CO2 by a minimum of 6 million tonnes, compared to using conventional cements.
Lee Dawes, Drax’s Chief Operations Officer, said, “Cement production is one of the most carbon intensive processes in the world and through this partnership, we will be able to help the construction industry cut its carbon emissions in the years ahead.
“Drax Power Station is integral to the country’s energy security and now through this new agreement it can play a further role in reducing carbon emissions in UK construction as well.
“The opportunity to sell large volumes of PFA from Drax Power Station as part of a long-term JV is another way in which we can realise incremental value from the site whilst helping to reduce carbon emissions. It is an exciting time for Drax as we continue to develop options for long-term investment in the site, including BECCS (Bioenergy with carbon capture and storage) and a data centre.”
Nigel Waldron, Power Minerals’s Managing Director said, “We are proud to have pioneered the use of ashes from Drax for more than 20 years, and now we are delighted to be a part of this major investment, securing a long-term future for our business and our relationship with Drax for decades to come.”
Ash from the power station was historically deposited at the nearby Barlow Mound. The mound will be retained at its current height along the west and southwest of the site to continue to protect the views of local residents. The remainder of the mound is to be extracted down to surrounding ground levels and then restored. Restoration will focus on retaining existing vegetation where possible, using native plant species, creating wetlands and a a pathway for recreation.
