The Port of Tyne has signed a new contract to maintain the supply of sustainably sourced biomass pellets to Drax Power Station.
The new four-year deal will see the port continue to import around one million tonnes of the pellets every year to supply the power station in Selby, North Yorkshire. The biomass pellets will be transported from the port by rail to Drax Power Station, which has been a customer since 2009, and the contract also includes a £1.5m upgrade to site facilities and rail infrastructure to aid a more efficient distribution operation.
Drax has converted its power station in North Yorkshire to use sustainably sourced biomass instead of coal and generates 9% of the UK’s renewable power, primarily through biomass generation at Drax Power Station. The transition has helped Drax reduce its generation scope 1 and 2 emissions by 99%.
The Port of Tyne says the new deal boosts its credentials in the national supply chain role in the renewable energy market, thanks to its works to supply both Drax and Lynemouth Power Ltd, meaning that between the two customers it directly supplies 20% of the raw material to support the UK’s renewable electricity demand.
It said that each 25-wagon train can carry sufficient biomass for Drax to generate enough reliable renewable electricity to supply around 800 UK homes for a year. Drax is a key partner of the Port of Tyne’s 2050 Maritime Innovation Hub and supports around 17,800 jobs across the UK, directly and through its supply chains.
Matt Beeton, CEO of the Port of Tyne, said: “This new contract will see bigger ships, more trains, and improved infrastructure as the Port of Tyne continues to grow its role in the UK renewable energy market. We look forward to deepening our partnership with Drax this year through our ISO 44001 and Customer First program.”
Mark Gibbens, head of logistics at Drax Power Limited said: “We welcome this new contract with Port of Tyne, a long-time partner of Drax. Our work with Port of Tyne is an important part of our robust global supply chain, which supports the delivery of dispatchable, renewable power to millions of homes and businesses across the UK.”
Tracey Younger, key account and service delivery manager at Port of Tyne, said: “This new agreement will allow us to continue to improve our customer relationship through the better use of enhanced facilities. This is great news for the port and Drax alike.”
The deal for the Tyneside port follows on from developments at other North East ports, including the arrival of the largest oil and gas decommissioning project to date at Port of Blyth. The port is carrying out the decommissioning of 7,000 tonnes of former topsides and jackets from three offshore platforms in a partnership with Thompsons of Prudhoe.
Meanwhile, the Port of Sunderland has outlined how it accelerated expansion into new markets following the abrupt halt in imports from Ukraine last year – a move which has seen it grow on the back of developing new revenue streams.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber