The Port of Tyne has signed a new contract with Drax, the UK’s largest renewable power generator by output, to maintain the supply of sustainably sourced biomass pellets to Drax Power Station in Selby, North Yorkshire.
The new four-year agreement will see the continued import of sustainably sourced biomass with annual volumes of up to one million tonnes.
The new agreement with Drax, a customer of the Port of Tyne since 2009, will see biomass pellets hauled from the port by rail to Drax Power Station in Selby, Yorkshire. The contract includes a £1.5 million upgrade to site facilities and rail infrastructure, leading to a more efficient distribution operation.
The re-forging of commercial terms will enhance the Port of Tyne’s national supply chain role in the renewable energy market by directly supplying 20% (LPL and Drax) of the raw material to support the UK’s renewable electricity demand. 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 has transitioned 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 biomass conversion has helped Drax reduce its generation scope 1 and 2 emissions by ~99%.
Drax is a key partner of the Port of Tyne’s 2050 Maritime Innovation Hub and supports around 17,800 jobs across the UK through direct employment and its operations.
“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,” commented Matt Beeton, CEO of the Port of Tyne.
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 & 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.”