Stobart Biomass Supply Contract
30 September 2013
STOBART GROUP LIMITED
('Stobart' or 'the Group')
Stobart Biomass Supply Contract - Port Talbot
The Board of Stobart is pleased to announce that Stobart Biomass Products Limited ("Stobart Biomass") has signed a 15 year contract with Western Bioenergy Limited ("Western") for the supply of approximately 150,000 tonnes of biomass fuel per annum into Western's existing biomass plant located at Port Talbot in South Wales. This contract is the first to result from the Master Framework Agreement with Greensphere Capital LLP ("Greensphere"), which was announced on 9 September 2013, and follows the acquisition of Western by Greensphere.
The contract requires a mix of virgin wood and grade A recycled wood, with the recycled component expected to increase following planned upgrades to the plant. Stobart Biomass will supply approximately 50% of the volume itself and manage and process the remainder, which will be supplied by a third party. In view of the relationship between Greensphere and Stobart Biomass and the importance of its supply role, the Group has decided to invest £0.8m to acquire a small stake in the equity and debt of the project, alongside Greensphere.
Andrew Tinkler, Chief Executive Officer, said "This is the first biomass supply contract with Greensphere under our Master Framework Agreement and represents another step in the development of our partnership in this growing market. We are pleased to have been able to make an investment in the project, which we expect to result in attractive returns for the Group, in addition to the profit generated by the supply of biomass."
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 |
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.
About Greensphere Capital
Greensphere Capital LLP ("Greensphere") is an FCA authorized and regulated specialist investment firm focused on sustainable energy and infrastructure. It was established in February 2011 by its three founding members: Divya Seshamani, Vince Julier and Jon Moulton (as non-executive Chairman), in order to bring discipline and rigour to sustainability and clean energy investing.
Greensphere invests in assets, on behalf of its investors, to create portfolios of long-term cash-yielding investments, underpinned by material and defensive sub-sector platforms. The first sub-sector platforms are concentrated on UK waste and waste-to-energy, namely Anaerobic Digestion and Waste Wood Biomass. Greensphere closed its first major investment platform, in Anaerobic Digestion, in November 2012.
Greensphere Capital has sourced a proportion of the investment from the UK Green Sustainable Waste and Energy Investments fund (UKGSWEI), which is managed by Greensphere on behalf of the UK Green Investment Bank. Greensphere was awarded a fund management mandate from the UK Green Investment Bank (GIB) for waste and waste-to-energy investments, after an extensive process involving 23 fund managers. The GIB is now one of several investors in funds managed by Greensphere.
This information is provided by RNS
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