Power Minerals Limited (PML) has signed a pioneering 20-year joint venture agreement with Drax, the UK’s biggest power supplier, to develop 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 ground-breaking investment will build a new facility near Drax Power Station in Yorkshire, to process coal ash for use in green cement and concrete – stopping millions of tonnes of CO2 being released into the atmosphere.

The new facility will be located next to the power station site on land leased from Drax.

Under the agreement PML, which is based in Sutton Coldfield, will construct, own and operate the new facility, while 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.

Production is expected to begin by the end of 2026, with the factory having an initial annual production capacity of 400,000 tonnes.

The production of cement contributes around 8 per cent 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.

PML managing director Nigel Waldron, a former president of Royal Sutton Coldfield Chamber of Commerce, 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.”

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.”

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.