Stobart Biomass Contract
Stobart Group Limited
30 July 2013
STOBART GROUP LIMITED
('Stobart' or 'the Group')
Stobart Biomass Contract
The Board of Stobart is pleased to announce that Stobart Biomass Products Limited ("Stobart Biomass") has entered into a new, long-term contract to supply fuel to the Evermore Renewable Energy Plant, a 15.8 MWe recycled wood fuelled combined heat and power (CHP) station to be constructed in Derry/Londonderry.
Construction work on the CHP plant will start in the coming weeks and it is expected to become fully operational by summer 2015. Stobart Biomass will supply the plant with over 115,000 tonnes of recycled wood per annum and is contracted to supply fuel for 15 years from the commencement date. The Group expects to generate revenues of approximately £75 million over the life of the contract.
Funding for the £80 million Evermore plant has been provided principally by the UK Waste Resources & Energy Fund (UKWREI), a fund managed by The Foresight Group and in which the UK Green Investment Bank plc is a cornerstone investor, Investec Bank plc and Eksport Kredit Fonden.
A key element in enabling a project such as this to obtain funding is the provision of a long-term, reliable, sustainable fuel supply. Stobart Biomass is able to meet these demanding requirements and the award of this contract adds further to the Group's reputation among plant developers and financiers as a respected, reliable supplier of high volumes of fuel to the rapidly developing biomass power market.
Andrew Tinkler, Chief Executive Officer, said "Stobart Biomass is seeing increased demand for its range of products across the UK and is pleased to support Evermore with this key development in Derry/Londonderry. Stobart Biomass has an extensive pipeline of opportunities. We look forward to helping plant developers and funders to bring those opportunities to fruition and growing our Biomass business."
ENDS
About Stobart Biomass
Launched in early 2010, Stobart Biomass is a leading processor, supplier and transporter of biomass fuels, forming a supply partnership with customers that plays a valuable role in meeting the UK's biomass targets. Biomass is the valuable fuel that is powering the rapidly-emerging minimum carbon heat and power generation sector.
Stobart Biomass employs around 300 personnel and is now at the forefront of the fast-developing UK market. In addition to the wood and life-expired timber traditionally used for biomass, the Company has been quick to identify and develop the potential of Refuse Derived Fuels, exporting large volumes to energy plants across northern Europe and Scandinavia.
Today Stobart Biomass is processing material at a national network of strategically located sites close to both the feed stocks and the end users, minimising unnecessary transport and cutting carbon emissions. These sites also offer valuable stockpiling capacity, providing ample material to meet peak winter demands.
Transportation is an important factor in the supply of all forms of solid fuel. Around 40% of the cost of biomass fuels is attributable to logistics and cost-effective, environmentally responsible delivery to market is essential. Drawing on the industry-leading logistics capability of Eddie Stobart and its dedicated environmental transport fleet, Stobart Biomass is capable of matching the smallest up to the largest fuel contracts with unrivalled logistics capability and benchmark standards of efficiency.
About Stobart Group
With over 5,900 employees operating from more than 50 sites across the UK and Europe, Stobart is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 2,400 vehicles, over 3,000 trailers and over seven million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group's business structure.
Enquiries:
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Stobart Group |
+44 1925 605 400 |
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Andrew Tinkler, Chief Executive Officer |
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Ben Whawell, Chief Financial Officer
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i-nfluence Associates |
+44 20 7287 9610 |
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Stuart Dyble/James Andrew
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Lansons Communications |
+44 7979 692287 |
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Tony Langham |
+44 20 7294 3617 |
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Anna Schirmer |
+44 20 7294 3605 |
This information is provided by RNS
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