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Stobart biomass division is to make a deal

Stobart Group’s biomass division has clinched another significant supply deal, enabling it to reach its target of supplying 2m tonnes of fuel each year by 2018. The Warrington-headquartered group, which operates a multi-modal site at Runcorn and Widnes, has signed an agreement with Tilbury Green Power, its fourth major biomass supply contract in four months. The 15-year index-linked contract with Tilbury Green Power will see Stobart Energy exclusively supply 270,000 tonnes of waste wood each year to a new biomass plant to be built at Tilbury Port, Essex.

Financial close has been reached on the £175m project and the plant will be built by Danish power plant specialist Burmeister & Wain Scandinavian Contractor. Over its expected lifetime, the facility is forecast to supply renewable electricity equivalent to the needs of 70,000 homes, and create up to 370 construction jobs and 50 full time jobs once operational. As part of the project at the Port, the Stobart Group is investing £7.5m in the construction of a new processing facility that will be built next to the 40MW biomass power station, enabling on-site processing of its own material. Stobart Rail will be carrying out these works. Construction of the processing facility will start this year with the fuel supply contract starting in March, 2017.

Meanwhile, following the announcement on March 3, regarding the signing of a supply contract between Stobart and Brite Partnership (North East), Stobart has announced that financial close was reached on March 11. This contract in Rotherham will see the group supplying and transporting 5.2m tonnes of waste wood to a 40MW biomass plant for the 20-year term of the contract. Richard Butcher, Stobart Energy & Infrastructure chief executive, said: “The group has now secured the necessary contracts to achieve its strategic target of supplying 2m tonnes per annum of fuel to the biomass market by 2017/18.

Stobart biomass division is to make a deal

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