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.”