Drax Power has agreed a 20-year joint venture agreement with Power Minerals Limited (PML) for the development of a facility to process pulverised fuel ash (PFA) into a supplementary cementitious material (SCM).
The new facility is expected to begin operations by the end of 2026, with an expected annual production of 400,000 tonnes once operating at full capacity.
Power Minerals is owned by Daniel Křetínský, the Czech billionaire who recently bought Royal Mail.
The new facility will be built next to the Drax power station site near Selby, on land leased from Drax Power. Under the agreement PML will construct, own and operate the new facility, while Drax will sell PFA to the JV as well as provide power and water to the facility.
Drax chief operations officer Lee Dawes 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.”