Strategy Day
10th July 2012
Richard Butcher
Deputy Group Chief Executive
Allan Jenkinson
Chief Executive, Stobart Biomass
Introduction
> Stobart Biomass continues to develop a wide product range to
meet an ever increasing and broad customer base
> Stobart Biomass supplied over 440,000 tonnes of grades A, B
and C recycled wood, SRF, RDF, Black bag wastes, forestry
residues, arboricultural arising's and G50 virgin fuels
> In 2011 Stobart Biomass moved 560,000 tonnes and arranged
over 16,500 lorry movements and 98 shipments
> Stobart Biomass sales within the UK increased by over 40%
> The Stobart Biomass structure grew in 2011 to include two
main offices with 30 staff across 6 operational sites
Existing & In Build Woodchip
Biomass Facilities
Current Contract/Agreements
Total Tonnage :
1.0 million
Target Contracts 2012
Tonnes
Material
Comment
Customer 1
250,000
RCF/ARB
Discussions ongoing. Stobart preferred supplier
Customer 2
450,000
RCF/ARB
Discussions ongoing, Stobart preferred supplier
200k tonnes virgin and 250k tonnes recycled
Customer 3
700,000
RCF
Letter of intent and press release drafted for approval
Also looking to sell a 50,000 tonne pellet mill to Stobart
Customer 4
225,000
RCF
Draft contract in final stages
Customer 5
50,000
RCF/ARB
Signed off, wood supply agreement being drafted
Customer 6
200,000
Virgin
Contract signed but in discussion to increase volume
Wood supply agreement being drafted
Customer 7
100,000
RCF
Draft contract in final stages
Customer 8
60,000
RCF
HoT’s in place for between 60,000-120,000 tonnes
Customer 9
120,000
RCF/RDF
Discussions ongoing
Contract Targets 2012
Total Tonnage:
2.182 million
Projected Contracts 2015
Total Tonnage:
3.0 million
Waste Wood Flows by Country
2009 (WRAP)
205
330
132
Total Tonnage:
4.573 million
3906
England
Wales
Scotland
N.I.
Waste Wood Flows by Regions
in England
Total Tonnage:
3.906 million
588
1161
543
420
780
414
Current UK Virgin Conifer Harvest
(Million Tonnes)
8
7
6
5
4
3
2
2022-2026 (11.576)
1
2017-021 (11.980)
0
2012-2016 (11.294)
Scotland
England
2010 (9.566)
Wales
N.I.
Stobart / AWJ Waste Wood
Production Capability
Total Tonnage:
1.0 million +
AWJ
Stobart
Future Stobart
Widnes Biomass Plant
> £75m project cost
> 25% equity / 75% debt
> 130,000 tonnes per annum fuel consumption
> 20.8MW generated power, export power 18.9MW,
generated heat 5MW
> 28.7% electrical efficiency
Summary
> Strong brand recognition
> Strong financial case
> Own logistics fleet
> Market presence
> Experience in sector
> Rapidly developing market
Strategy Day
10th July 2012