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Contract Wins and Joint Ventures

Stobart's deal

24 March 2015 07:26

Stobart Group has signed its fourth major Biomass supply contract in four months. This latest agreement will complete the Group's target of supplying 2 million tonnes per annum by 2017/18.

The 15-year index-linked contract with Tilbury Green Power Limited 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.

Financial close has been reached on the £175m project. The plant will be built by Danish power plant specialist Burmeister & Wain Scandinavian Contractor A/S. Over its' expected lifetime, the facility is forecast to:

- Supply renewable electricity equivalent to the needs of 70,000 homes

- Create up to 370 construction jobs and 50 full time jobs once operational

As part of the project at the Port, the Group is investing £7.5m in the construction of a new processing facility that will be built adjacent 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 commence in 2015 with the fuel supply contract starting in March 2017.

Story provided by StockMarketWire.com

Related Company: STOB

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