Introduction and Overview

Stobart Biomass builds a supply partnership with customers that plays a valuable role meeting the UK’s biomass targets, whilst reducing waste and cutting the nation’s reliance on expensive,
environmentally irresponsible landfill.

Launched in early 2010, Stobart Biomass Products Limited is a major business that draws on many years’ combined experience in the sector. Initially formed as a joint venture between Stobart Group plc and the UK’s largest wood co-product processor and supplier; AW Jenkinson Forest Products; since its inception Stobart Group have taken full control of the biomass business.

Stobart Biomass sources sustainable biomass; primarily made up of life-expired timber, low grade softwood and waste materials; for the new generation of minimum-carbon power plants utilised both
in large-scale electricity generation and smaller on-site industrial power plants. In our increasingly carbon-conscious world the need to combat the threat of global warming is no longer simply a legislative consideration.

Today, low carbon biomass fuels form a key source of heat and power not just for utilities, but increasingly for the generation of energy for industrial and commercial sites, offices, schools and hospitals.

A constant issue with all forms of solid fuel is transport; around 40% of the cost of biomass-based fuel is made of logistics; meaning costeffective delivery to market is essential. Stobart Biomass matches the demand for a reliable source of a broad spectrum of biomass fuels and extensive research and expertise with multimodal logistics capability and industry-leading standards of efficiency to meet the key requirements of every biomass facility.

Already supplying in excess of 150,000 tonnes of biomass to the UK and over 350,000 tonnes to Europe, additional growth and contracts already in place will see Stobart Biomass increase this
annual throughput to over a million tonnes during 2012.

UK biomass policy is driven by the 2008 Climate Change Act which establishes a long-term framework to tackle climate change. The Act aims to encourage the transition to a low-carbon economy in the UK through the setting of legally binding unilateral emission reduction targets.

The Renewable Energy Strategy presented in July 2009 stated that the UK as a whole had made a commitment to source 15% of its energy from renewable sources by 2020. This target reflects an almost seven fold increase in market share for renewables from just 2.25% in 2008. (Source: The UK Renewable Energy Strategy DECC July 2009).

The Renewables Energy Roadmap published in July 2011 recorded that by the end of 2010 there was 2.5GW of biomass electricity capacity already operational in the UK; meaning biomass is the single largest contributor to the total amount of renewable energy generated.

The Renewable Heat Incentive will further increase demand during 2011, as biomass becomes one of the key elements in meeting renewables targets in the UK.

As the supply of biomass increases to meet demand in the UK, the key issues will remain the sustainability of supply and reliability of the logistical support required to ensure delivery... With its huge material supply and unrivalled transport resources Stobart Biomass offer the total solution.

The Stobart Biomass team has built an excellent track record serving a wide range of customers, from some of the UK’s largest biomass power stations to smaller commercial, municipal and
industrial plants.

During 2010 in its first year of trading Stobart Biomass was responsible for the sourcing and supply of in excess of 200,000 tonnes of biomass fuels to UK and European markets. The Company provides a total service; managing every level of the supply chain for the customer, yet retaining the flexibility to match its service profile to specific individual requirements.

As the UK market continues its rapid growth, Stobart Biomass has been active in developing overseas contracts in Europe and Scandinavia. The Company has established numerous major long-term contracts across the UK and throughout the Continent.

Services

Material Supply

Stobart Biomass cuts out the issues of logistics management, consistency of supply, traceability and peak period volume requirements that normally make direct fuel sourcing unviable for customers.

Most supplier sites don’t generate sufficient material individually to meet the demands of larger customers, meaning that without Stobart Biomass these companies would have to build their own complex supply chain to ensure a flow that meets the peaks and troughs of energy production; peaks and troughs that are often the reverse of seasonal demand.

Reporting and Auditing

As part of the Renewable Energy Certificate (ROC) regime, planning consents and related licence requirements, Stobart Biomass customers are often required to present extensive evidence of ‘sustainability’ of supply and quality of materials.

Stobart Biomass has an excellent record in providing this information, including physically auditing the suppliers’ sites.

Complete Logistics

Stobart Biomass provides the complete logistics solution for both the sourcing and delivery of material.

Drawing on the huge transport resources of Stobart Group to meet every level of demand; as one customer pointed out, they need “one wagon every twelve minutes for the next 20 years”.

Project Consultancy

Stobart Biomass is frequently involved from the earliest stages of project layout design and planning of materials handling.

Drawing on an unrivalled body of experience, Stobart Biomass works closely with customers to nsure material handling onsite is as efficient as possible.

Biomass Research

The Company maintains one of the most extensive databases of the chemical composition of various UK sources of biomass.

This invaluable information has been compiled from the hundreds of samples submitted for testing. Stobart Biomass data can be made available to customers and their advisers, avoiding expensive mistakes.

Added Value Services

Where required, Stobart Biomass can also operate customers’ reception and storage sites, providing round-the-clock men and machines.

Dedicated personnel help ensure that all loads received are of acceptable specification and that any blending of loads is carried out correctly.