INDUSTRY NEWS


AEBIOM GCube secures UK biomass projects I


t was announced on 4 September that GCube has been selected to provide insurance underwriting services for two of the UK’s leading biomass projects.


Whilst Government support for the biomass market has gone through a number of recent changes, the sector is still seen as one of the most promising renewable resources and whilst developers may remain uncertain as to the support from the industry under Contracts for Difference, they can minimise their construction and operational risks by using the services of an underwriting authority.


The first development, Ridham Dock, located in the county of


Kent, is a waste wood pellet heat combustion facility that will provide 80MW of electricity to the UK grid. The developer, Renewable Energy Projects Ltd, expects the plant to be completed by March, 2015.


The second project is an £80 million, 15MW, combined heat and power plant in Lisahally, Belfast. Similar to Ridham Dock, the project will secure the majority of its fuel from waste wood supplies. This project, developed by Evermore Renewable Energy, has secured funding from the UK’s Government’s Green Investment Bank and is expected to be able to provide power for 25,000 homes. “The UK biomass market continues to weather a real period


of economic uncertainty,” said Jatin Sharma, Business Development Leader at GCube. “Despite the recent interest from the fund and investor community, best demonstrated by PensionDanmark’s investment in Lincolnshire and Gravis Capital Partner’s interest in the Lisahally project, the future financial commitment remains a real unknown.


“It’s because of this that we were particularly keen to develop a programme that provided investors with the confidence they need for financing the projects. At GCube, we can manage construction and investor risks, leaving investors free to focus on making the energy-generating infrastructure really work.


Jatin Sharma.


“Ultimately, the biomass market in the UK has great potential, including being able to meet up to 30% of the UK’s 2020 climate target and we look forward to continuing to support the sector in the coming years.”


CHP contract for Stobart Biomass


It has been announced that Stobart Biomass Products Ltd, a leading processor, supplier and transporter of biomass fuels, has entered into a new, long-term contract to supply fuel to the Evermore Renewable Energy Plant, a 15.8 MW recycled wood- fuelled combined heat and power (CHP) station to be constructed


by Danish power plant specialist Burmeister & Wain Scandinavian Contractor A/S on land owned by Londonderry Port and Harbour Commissioners at Lisahally. The new plant will increase the amount of renewable energy currently generated in Northern Ireland by approximately 10%.


Construction work on the CHP


plant will start in the coming weeks and it is expected to become fully operational by the Summer of 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 start-up 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 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


North American pellets for UK


The UK continues to strengthen its claim as the primary destination for North American pellets with over two-thirds of the export volume from the US and Canada going there in the first quarter of 2013.


4 4 September 2013


The plans by Drax for its large power plant conversion from coal to biomass in Selby, England, continue to make news across North America. Drax Biomass, a new sister company to Drax


Power, which will manage North American operations, announced the construction of two pellet plants earlier this Spring in the Southern US, which will be sending pellets to fuel the UK facility.


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 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”.


In Eastern Canada, pellet producer Rentech also announced an off-take agreement with Drax Biomass, which will result in new investment in ports to increase pellet-loading capacity and in rail transportation, in addition to the construction and operation of two new pellet facilities.


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