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Stobart signs long-term biomass supply agreements

21 September 2015 07:26

Stobart Group has signed a 14-year, index-linked fuel supply agreement to a 40MWe waste wood-fuelled biomass plant at Port Clarence, Teesside, which has successfully reached financial close today.

The supply will commence in late 2017. Port Clarence is scheduled to commence operations in early 2018 and will generate revenue for the Group's Energy Division.

Highlights:

- Stobart Energy will source, process and supply 250,000 tonnes p.a. of recycled waste wood to Port Clarence over 14 years equating to 3.5m tonnes over the life of the agreement.

- Stobart Energy's Transport business will be responsible for transportation of the product, delivering 250 loads each week to Port Clarence over the 14 year agreement, generating additional revenue for the Energy Division.

- The developers of the Project are Eco2 (developer 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 Group 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.

Story provided by StockMarketWire.com

Related Company: STOB

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