Stobart Biomass deal set to power paper mill
Stobart Biomass has secured a long-term deal with Iggesund Paperboard to source, supply and transport biomass feedstock to fuel its new £100 million power station at its Workington paper mill.
Stobart Biomass will supply Iggesund with forest residue and recycled wood for use as biomass fuel. The two companies will effectively work in partnership providing low-carbon energy at the West Cumbrian plant.
Stobart Group CEO, Andrew Tinkler, said: "Stobart Biomass is growing apace with the development of this fast-expanding new sector, and this long-term agreement is typical of other contracts currently under negotiation.
"The supply and distribution nature of the agreement delivers further commercial and efficiency benefits in the group's transport and logistics division, as biomass delivery is added to the distribution contract, facilitating greater fleet utilisation."
Work on the contract commences in the first quarter of 2013, replacing gas-power with biomass fuel at Iggesund's power station.