Drax has announced a 20-year joint venture agreement with Power Minerals Limited (PML) to develop a state-of-the-art factory that will process millions of tonnes of legacy ash into Supplementary Cementitious Material (SCM), a key component in low-carbon green cement.
The new facility will be located adjacent to the Drax Power Station site on land leased from Drax. The power station, now converted to biomass, is the UK's largest renewable electricity generator, capable of supplying around five million homes with power.
Under the agreement, PML will build, own, and operate the new factory. Drax will supply its legacy Pulverised Fuel Ash (PFA) to the joint venture, provide power to the site, and share in the profits from the SCM sales. Drax anticipates the project could generate approximately £5 million in incremental adjusted EBITDA annually from 2027 to 2046.
Production at the new facility is expected to commence by the end of 2026, with an initial annual production capacity of 400,000 tonnes.
The cement industry is a significant contributor to global CO2 emissions, accounting for around 8% annually. Over the project's duration, PML estimates that using PFA from Drax can reduce CO2 emissions by at least 6 million tonnes compared to using conventional cements.
Lee Dawes, Drax's Chief Operations Officer, described the deal as a landmark for both Drax and the UK construction industry. "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 and a data centre."
Nigel Waldron, PML'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."
Nils Jansen, Head of Cementitious Materials at PML's parent company, EP Power Minerals GmbH, added: "This substantial investment and its projected returns represent a game-changer not only for PML, but for the entire EPPM Cementitious Materials business. This positions us to become the leading player in the UK fly ash market for the foreseeable future."
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 preserve views for local residents. The remainder of the mound will be extracted to surrounding ground levels and then restored, with a focus on retaining existing vegetation, using native plant species, creating wetlands, providing equivalent or improved habitats, and establishing a recreational pathway through the restored landscape.
Construction News
27/03/2025
Drax And Power Minerals Partner For Low-Carbon Cement Production


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