Drax signs JV deal to process byproduct for building industry

(Sharecast News) - Drax said it has agreed a 20-year joint venture agreement with Power Minerals to build a facility to process pulverised fuel ash into material which can be sold to the construction industry and used in the production of cement with a lower carbon footprint. The project could generate incremental adjusted core earnings of £5m a year for Drax post 2027 through to 2046, the company said on Thursday.

The new facility will be located next to Drax's power station. Under the agreement Power Minerals will build and own the factory, with Drax selling the product as well as providing power and water. It is expected to start operations by the end of 2026, with an expected annual production of 400,000 tonnes once operating at full capacity.

Reporting by Frank Prenesti for Sharecast.com