Around 100 new jobs are to be created on the Humber after Associated British Ports signed a 15-year deal with Drax.
ABP says the deal will see investment of up to £100m at its ports at Immingham, Hull and Goole, allowing it to handle wood pellet shipments into the docks to support Drax Power's conversion to a low carbon electricity producer.
Around 100 jobs will be created at the ports during the construction phase and more 100 permanent positions will be supported once the facilities become fully operational over the next few years.
The Drax Power Station at Selby is the UK's largest single producer of electricity, meeting approximately seven per cent of the UK's electricity needs.Drax plans to convert three of its existing coal-fired generating units to burn sustainable biomass.
In response, ABP is investing in new discharge and storage facilities at Immingham, Hull and Goole.
At Hull, ABP is investing in dedicated handling equipment and storage facilities in order to handle up to one million tonnes of biomass each year to be supplied to Drax by rail. Further inland at its port of Goole, only seven miles from Drax, investment in warehousing is also being made as a result of increased imports of biomass through the port.
ABP's new Group Chief Executive James Cooper said: "We are very pleased to be able to announce we have signed this contract with Drax. As the UK's leading ports operator we look forward to building on our already long-standing relationship with a leading UK energy producer.
"ABP's Humber Ports are already at the forefront of the renewables industry with the proposed development of the £200m Green Port Hull offshore wind turbine facility, while at Grimsby there is continuous investment by leading offshore wind farm operators in the development of Operations and Maintenance bases.
"This investment at Hull, Immingham and Goole looks set to secure the Humber region's position as a centre of excellence for the development of the low carbon energy future."
