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Drax has announced a 20-year joint venture with Power Minerals Limited (PML) to develop a state-of-the-art factory to process millions of tons of legacy ash into Supplementary Cementitious Material (SCM), a key ingredient in low-carbon green cement. The new factory will be located on land leased from Drax and will be owned and operated by PML, with Drax providing power to the site and selling its legacy Pulverised Fuel Ash (PFA) to the joint venture.
The agreement is expected to generate incremental adjusted EBITDA of around £5 million per year from 2027 to 2046. The factory is expected to begin production by the end of 2026, with an initial annual production capacity of 400,000 tons. The production of cement is a significant contributor to global CO2 emissions, accounting for around 8% of annual emissions.
The joint venture aims to reduce emissions by at least 6 million tons of CO2 over the project’s duration, compared to using conventional cements. Drax’s Chief Operations Officer, Lee Dawes, said the deal is “a landmark agreement” for the company and the UK construction industry, as it will help reduce carbon emissions in the sector.
The agreement also paves the way for the potential development of other projects at the Drax Power Station site, including a BECCS (Bioenergy with Carbon Capture and Storage) plant and a 1.2GW data center. PML’s Managing Director, Nigel Waldron, expressed his pride at being part of the project, which secures a long-term future for the company’s relationship with Drax.
The project will also see the restoration of the Barlow Mound, which will be retained at its current height and then restored to its natural state with native plant species and walkways for recreation.