27th Mar 2025 10:15
(Alliance News) - Drax Group PLC on Thursday said it has entered a 20-year joint venture with Power Minerals Ltd to build a facility that will convert pulverised fuel ash into low-carbon cement material, in a move aimed at reducing emissions in the construction industry.
Drax, a Selby, England-based electricity generator, said the facility, expected to begin operations by the end of 2026, will be located adjacent to Drax Power Station in North Yorkshire. It is expected to produce up to 400,000 tonnes annually at full capacity.
Power Minerals, a Selby-based supplier of power station ash products owned by EP Power Minerals GmbH, will own and operate the facility, while Drax will supply the ash, along with power and water, and share in the profits. Drax said it will not contribute capital investment to the project.
The company expects the joint venture to deliver incremental adjusted earnings before interest, tax, depreciation and amortisation of around GBP5 million per year between 2027 and 2046.
"This is a landmark deal not only for Drax, but for the UK construction industry," said Chief Operations Officer Lee Dawes. "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."
Pulverised fuel ash is a byproduct of power generation, and Drax said it has enough reserves to meet the needs of the facility over the 20-year period. Power Minerals estimates the use of this ash in cement production could avoid at least six million tonnes of CO2 emissions over the life of the project, compared to conventional cement.
Shares in Drax were up 0.2% at 592.00 pence in London on Thursday morning.
By Eva Castanedo, Alliance News reporter
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