LONDON: Drax Power Limited has entered into a 20-year joint venture agreement with Power Minerals Limited (PML) to establish a cutting-edge facility for processing pulverised fuel ash (PFA) into supplementary cementitious material (SCM).
This innovative material will lower the carbon footprint of cement production, offering a sustainable solution for the construction industry.
The facility will be located on land leased from Drax Power Limited, adjacent to Drax Power Station. Under the terms of the agreement, PML will construct, own, and operate the facility, while Drax Power Limited will supply PFA and provide essential utilities like power and water. The venture also includes profit-sharing from SCM sales, with no capital investment required from Drax.
The new operation is expected to commence by the end of 2026, producing up to 400,000 tonnes annually once fully operational. Drax anticipates incremental adjusted EBITDA of approximately £5 million annually from 2027 to 2046.
“This is a landmark deal not only for Drax, but for the UK construction industry,” said Lee Dawes, Chief Operations Officer of Drax Power Limited. “Cement production is one of the most carbon-intensive processes globally. Through this partnership, we will support the construction industry in reducing emissions while driving incremental value from our site.”
Dawes also emphasized Drax Power Station’s role in energy security and its expanded contribution to reducing carbon emissions through the venture. He added, “We’re excited to explore further investment options at the site, including BECCS and a data center.”
Background information reveals that the project could save at least 6 million tonnes of CO2 emissions over its duration, compared to traditional cement production methods. PFA, a byproduct of Drax Power Station, will be utilized for SCM production during the 20-year period.
Drax Power Station currently supports UK energy security with 24/7 renewable power generation and various system services, boasting 2.6GW of biomass generation capacity and 1.3GW of grid connection. As outlined in its February 2025 results, Drax continues to assess opportunities for sustainable growth, including BECCS and additional developments.