Drax agrees 20-year deal with power minerals for state-of-the-art green cement factory

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 t.

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.

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Read the article online at: https://www.worldcement.com/europe-cis/27032025/drax-agrees-20-year-deal-with-power-minerals-for-state-of-the-art-green-cement-factory/