Drax has today announced a 20-year joint venture agreement with Power Minerals Limited (PML) to allow for the development of a state-of-the-art 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. Following its conversion to using biomass, the plant is now the single largest generator of renewable electricity in the UK. The power station can provide reliable renewable electricity to around 5 million homes – equivalent to every home in London, or Wales and Scotland combined.
Under the agreement PML 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. Drax 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, PML estimates the utilisation of PFA from Drax can reduce emissions of CO2 by a minimum of 6 million tonnes, compared to utilising conventional cements.
Lee Dawes, Drax’s Chief Operations Officer, said: “This is a landmark deal not only for Drax, but for 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, said: “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 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, providing ‘like for like or better’ habitats for those that are lost and the creation of a pathway through the restored landscape for recreation.
ENDS
Media contacts:
Aidan Kerr
E: aidan.kerr@drax.com
T: 07849090368
Editor notes
- There is no capital investment required by Drax Power Ltd.
- Drax Power Station is the UK’s largest source of 24/7 renewable power, supporting UK energy security with flexible and reliable renewable power generation and a wide range of system support services.
- Drax believes that the size, flexibility and location of the asset make it an integral long-term part of the UK energy system. The station has 2.6GW of current biomass generation capacity, in addition to 1.3GW of additional grid connection.
- As outlined at the Group’s full year results in February 2025, Drax is continuing to assess opportunities for value creation and growth from the site including BECCS and a 1.2GW data centre.
About PML
Power Minerals Ltd (PML) is the UK’s leading independent supplier of Power Station by-products, providing ash sales and marketing services for the power generation sector, and creating a robust and reliable supply chain of sustainable energy by-products to the construction, manufacturing and infrastructure sectors.
Every year PML diverts millions of tonnes of ash from landfill, while reducing the need for its clients to impact the countryside by mining for virgin aggregates. We are also retrieving long-forgotten ash from old stockpiles, and developing methods to enhance these sources, ensuring a sustainable supply chain for the future.
