Plan for waste to energy plant - Redcar Bulk Terminal
24 Jul 2018

Redcar Bulk Terminal and PMAC Energy plan £250 million waste-to-energy plant creating 400 local jobs

Plans have been unveiled for a £250 million waste-to-energy plant at Redcar Bulk Terminal (RBT) to help power the economic regeneration of South Tees.

Yorkshire-based waste management company PMAC Energy has secured 25 acres of the terminal’s land for the development, which could create up to 400 local jobs at the heart of the South Tees Development Corporation site.

Subject to permitting and planning approvals, the plant could be producing waste derived fuels in 2021 and generating enough electricity to power 56,000 homes.

This announcement comes two weeks after RBT signed a major land and handling agreement with Sirius Minerals Plc that will see up to 10 million tonnes of Polyhalite – a type of potash and multi-nutrient fertiliser – pass through the facility each year.

Garry O’Malley, RBT’s General Manager, said: “Today’s announcement is hugely significant, not only for our businesses but for the whole South Tees region. We’ve worked closely with PMAC Energy on this project for a number of years and it’s another reflection of the continued resurgence of Redcar Bulk Terminal and this site.

“Like many others on Teesside, we were dealt a hammer blow when SSI closed – so much so you could say RBT’s mere survival is a success in itself. We’re grateful for the strong support we received during these difficult times, in particular from Greybull who provided us the capital and energy required to turn the corner. The fact we’re seeing significant growth, diversifying our business and attracting new companies to the Tees is an incredible achievement.

“Projects like this – which could bring hundreds of millions of pounds and many valuable jobs to Teesside – are heralding the start of a new era for RBT and our employees.

“We’ve a healthy business pipeline and the continued investment in our operations from British Steel and Greybull means we can continue to grow with confidence and pace.

“These are exciting times and we look forward to working with PMAC Energy to deliver renewable energy to power the future economic success of this site and this region.”

RBT’s road, rail and port facilities offer access to both the UK and European waste markets. Up to 500,000 tonnes of refuse derived fuels would pass through the plant each year with 150,000 tonnes of this exported to cement and energy plants across the world.

The plant would create up to 400 local jobs in the next three and a half years. These opportunities could start in 12 months’ time with the construction of the plant and would continue – following a two-and-a-half-year build – with the availability of up to 100 full time operational jobs.

Unlike many other energy projects across the UK, the PMAC Energy plant would be completely free from Government subsidies and financial support with all income generated purely from waste gate fees and the sale of electricity. Following commissioning the plant would operate as a 100% commercial entity.

Rob Lewis, PMAC Energy Managing Director, said: “This is an incredible opportunity to deliver a major economic boost to the South Tees area and capitalise on the great strengths and capabilities of Redcar Bulk Terminal.

“RBT’s superb port facilities and road and rail links make this the perfect location for this plant. Not only does it give us the logistical advantages of being on the River Tees, the area also provides us with the workforce we’d need to manage the volume of waste coming into the plant and the quantity of fuel being created.”

Working in partnership with RBT – on a 25-year lease – the PMAC Energy facility would recover and treat municipal and commercial waste to create fuel for the renewable energy sector, capable of providing both heat and power. Generated fuels would not only power the on-site waste to energy plant but also be available and sold into the export market.”

Redcar MP Anna Turley said: “This is another big investment project in our area which builds on our existing strengths in energy generation and waste management, and crucially creates new skilled jobs for people in our area.

“I was pleased to visit RBT recently to see how the business is growing year on year and this latest project is another boost for their growth ambitions. I look forward to working with RBT and PMAC as this project develops, especially to ensure local people can benefit from as many of the new jobs as possible.”

British Steel has a 50 per cent stake in Redcar Bulk Terminal.

About PMAC Energy

• Hull-based PMAC Energy has evolved out of PMAC Environmental which currently supplies tens of thousands of tonnes of waste derived fuels to Energy from Waste (EfW)) combined heat and power facilities and cement factories across Europe sourced from the UK and from Mainland Europe.

• Robert Lewis is currently Managing Director of PMAC Environmental and PMAC Energy.

• Robert Lewis has been in the waste industry for 20 years and started PMAC Environmental in 2012 to provide waste management services and has evolved into specialising in the field of supplying waste derived fuels to power stations and Renewable energy facilities throughout Europe.

• PMAC Environmental has secured many contracts to supply CHP facilities in Northern Europe and the Baltics. All waste derived fuels are sourced from several European countries. An export and import terminal has just been established in Amsterdam to further expand operations and give access to extended markets.

• Therefore the next logical step for PMAC is to develop our own Waste to Energy facility, using all our knowledge gained in technology providers, best location and fuel supply. We have been working with Redcar Bulk Terminal (RBT) for 2 years to secure the land. This has led to the creation of PMAC Energy.

About Redcar Bulk Terminal

• Redcar Bulk Terminal Limited (RBT) is situated on the South Bank of the River Tees on the North East coast of the United Kingdom.

• RBT operates a 320-metre-long quay which can accommodate vessels up to 17 metres draft and is fitted with two Ship Unloaders which can operate on grab or hook for bulk or conventional cargoes respectively.

• It is HMRC approved for the storage of un-cleared goods and enjoys direct rail access to the National Rail Network along with excellent road links to both the A19 and A1(M).

• The facility operates 24 hours a day all year round and the terminal is equipped to handle rail traffic with separate wagon load and offload bulk handling equipment.

• Key imports include coal, petroleum coke, granulated slag and aggregates while key exports include metallurgical coke and furnace ready scrap.