Drax strikes deal to develop 400,000 tonne ash facility
Drax has agreed a 20-year joint venture deal that will see the development of an ash processing facility close to its power station.
The new facility is expected to begin operations by the end of 2026 and produce 400,000 tonnes of ash per year at full capacity.
The company estimates it will generate incremental adjusted pre-tax earnings of around £5m per year between 2027 and 2046.
The tie-up between Drax Power Limited, a subsidiary of Drax Group, and Yorkshire ash supplier Power Minerals Limited, will see the processing of pulverised fuel ash (PFA) into cement materials which can be sold on to the construction industry.
PFA is a byproduct of power generation at Drax Power Station. Drax claims using the substance in the production of cement could reduce carbon emissions by a minimum of 6m tonnes annually.
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.
He added: “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.“