Stobart Group Limited Long term biomass supply agreements (5921Z)
21 September 2015 - 8:00AM
UK Regulatory
TIDMSTOB
RNS Number : 5921Z
Stobart Group Limited
21 September 2015
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
Redleaf PR +44 20 7382 4730
Charlie Geller Stobart@redleafpr.com
Joanne Brown
influence Associates +44 20 7287 9610
Stuart Dyble
James Andrew
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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