Stobart seals fourth biomass deal in as many months

STOBART Group is trumpeting the signing of its fourth major biomass supply contract in four months.

The latest agreement will complete the Cumbria-based company’s target of supplying two million tonnes per annum by 2017/18.

The 15-year index-linked contract with Tilbury Green Power will see Stobart Energy exclusively supply 270,000 tonnes per annum of waste wood to a new biomass plant to be built at Tilbury Port, Essex.

Danish power plant specialist Burmeister & Wain Scandanavian Contractor in a £175m project.

It will 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.

The group is also investing £7.5m in the construction of a new processing facility which will be built adjacent to the 40MW biomass power station, enabling on-site processing of its own material. The work will be carried out by Stobart Rail.

Construction of the processing facility will start this year with the fuel supply contract starting in March 2017.

Meanwhile, Stobart has announcing the signing of a supply contract partnership with Brite Partnership (North East. The 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.

Chief executive of Stobart Energy & Infrastructure Richard Butcher said:”  “The Group has now secured the necessary contracts to achieve its’ strategic target of supplying two million tonnes per annum of fuel to the biomass market by 2017/18.
 
“Stobart Group also continues to put in place the necessary infrastructure and processing capabilities to support these supply contracts.

“We are delighted with the progress made over the last few months as we continue to consolidate our position as the leading fuel supplier in the biomass sector.”