Drax: Power station operator partners on new project for 'low carbon' cement
Yorkshire power station operator Drax has announced a 20-year agreement with Power Minerals Limited (PML) for a new factory to process millions of tonnes of legacy ash into an ingredient used in what the firms described as “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, PML will construct, own and operate the new facility, whilst Drax will sell its legacy Pulverised Fuel Ash to the joint venture as well as providing power to the site.
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 said it believes the project could generate incremental adjusted EBITDA of around £5m 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.