Stobart seals 14-year biomass fuel supply deal

INFRASTRUCTURE and support services company Stobart Group has signed a 14 year index-linked fuel supply agreement to a 40MWe biomass plant on Teesside.

The deal with the wood-fuelled biomass facility at Port Clarence takes immediate effect with supply starting in late 2017.

Port Clarence is due to begin commercial operations in early 2018 and will generate revenue for the group’s energy division.

Carlisle-based Stobart Energy will source, process and supply 250,000 tonnes per year of recycled waste wood to Port Clarence over 14 years equating to 3.5 million tonnes over the life of the agreement.

The group’s business will be responsible for transportation of the product, delivering 250 loads each week to Port Clarence.

Developers of the project are Eco2 – specialists of other biomass projects at Margam, Sleaford, Snetterton, Port Talbot and Brigg – and Temporis Capital.

The construction period will be 24-26 months with commissioning scheduled for mid-2017 and operations to commence in early 2018.

Stobart is not involved in the financing of the project which is being funded by equity from Glennmont Partners and project finance from a club of lenders.