21 Sep 2015 07:00
21 September 2015
Stobart Group Limited
("Stobart" or the "Group")
Long Term Biomass Supply Agreements
The Board of Stobart Group Limited, the support services and infrastructure group, is pleased to announce the signing of 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.
Highlights
Port Clarence is scheduled to commence operations in early 2018 and will generate revenue for the Group's Energy Division.
· 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.
Enquiries:
Stobart Group | +44 20 7851 9090 |
Andrew Tinkler, Group Chief Executive Officer Richard Butcher, CEO Energy & Infrastructure
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Redleaf PR | +44 20 7382 4730 |
Charlie Geller Joanne Brown | Stobart@redleafpr.com |
influence Associates | +44 20 7287 9610 |
Stuart Dyble James Andrew
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Notes to Editors
· Focus on Energy and Aviation: Stobart Group is an Infrastructure and Support Services business deriving income from Energy, Aviation, Civil Engineering and Investments. Its strategy is to drive growth and profitability in Energy and Aviation.
· Growing volumes: Stobart sources, processes and delivers fuel to power plants for third parties under long-term contracts. Revenue growth comes from the ongoing increase in tonnages supplied, which exceeded 1,170,000 tonnes in the year to February 2015.
· Growing passenger numbers: Capital expenditure to develop London Southend Airport is largely complete with the extension of the terminal increasing capacity from one to five million passengers. Growing passenger numbers from a broadly fixed cost base will drive profitability.
· Realising value: Stobart will continue to maximise value from its property Investments to support maintained dividends.
· Value creation: The Group realised a 51% interest in its Transport & Distribution business and used the proceeds to reduce its debt significantly, invest in its Infrastructure and Energy divisions and return funds to shareholders.
· Investing for growth: Stobart plans to invest in minority stakes in sustainable CHP and anaerobic digestion plants over the next two years.
· Strong board: Stobart has a strong board led by its' Chairman Iain Ferguson CBE, former Tate & Lyle CEO along with three new Non-Executive Directors.