Biomass Fuel Supply Agreements

RNS Number : 2133I

Stobart Group Limited

24 March 2015

 



24 March 2015

Stobart Group Limited

("Stobart" or "Group")

Biomass Fuel Supply Agreements

Contract with Tilbury Green Power Ltd

Stobart Group is pleased to announce the signing of 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.

Contract with Brite Partnership (North East) Ltd

Following the announcement on 3^rd March regarding the signing of a supply contract between Stobart and Brite Partnership (North East) Ltd, the Group are pleased to announce that financial close was reached on 11 March 2015.  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, CEO Stobart Energy & Infrastructure, commented

"The Group has now secured the necessary contracts to achieve its' strategic target of supplying 2 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".

Enquiries:

Stobart Group	[phone]
Andrew Tinkler, Group Chief Executive Officer Richard Butcher, CEO Energy & Infrastructure
Redleaf PR	[phone]
Emma Kane Rebecca Sanders-Hewett Charlie Geller	[e-mail]
influence Associates	[phone]
Stuart Dyble James Andrew

Notes to Editors

Stobart Group is focused on energy, aviation and infrastructure.

The Group owns and operates London Southend Airport, the capital's newest airport flying to 25 destinations across Europe. In 2014 the airport was rated best UK airport in the Which? customer satisfaction survey for the second year running. There were 1.1m passengers in the year to 28 February 2015.

Stobart Group is the number one supplier of biomass in the UK. The Group sources and delivers fuel to biomass plants under long-term contracts. Stobart Group now has agreements in place to deliver its' target of supplying 2 million tonnes of fuel per annum to the UK biomass market by 2017/2018.

At its Interim Results for the six months ended 31 August 2014, the Group maintained an interim dividend of 2.0p (2013: 2.0p) per share. Stobart Group expects to maintain its dividend through the proceeds from disposals of its property investments.

 

END

 

 

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