Port of Tyne to handle pellets for Lynemouth plant

The U.K.-based Port of Tyne has announced plans to start building new facilities to handle, store and transport wood pellets for Lynemouth Power Ltd. According to information released by the port, LPL is making good progress with its plan to convert from coal to biomass.

The port said it has secured the agreement to handle, store and transport up to 1.8 million metric tons of wood pellets annually once the conversion is complete.

According to the port, construction has begun on its estate at the Tyne Dock in South Shields to build a 75,000 metric ton storage facility, three enclosed conveyors and transfer towers, three silos, a rail loading silo and other works. The Port of Tyne is contributing £13 million ($18.99 million), with the majority of the investment being made by LPL.

The announcement of the new contract with LPL was made at the port’s annual general meeting on May 19. According to the port, it achieved turnover of £59 million and profit before taxes of £6 million last year, despite the dramatic reduction in coal imports to the U.K.

"The fast approaching end of coal imports has been challenging for all U.K. ports that have been handling this cargo, but the strategy of diversification at the Port ensures that we are not reliant on any one sector,” said Andrew Moffat, CEO of the Port of Tyne. “We have been at the forefront of developing expertise and facilities to handle the renewable fuel, wood pellet, and I am delighted that LPL have chosen the Port of Tyne as a key partner in this significant development.”