A major multi-million-pound wood refinery will be developed in East Yorkshire, the first of its kind in the country and only the second in the world.
The £10 million Y Pellets development will help revolutionise supply to the UK’s biomass energy market and provide a boost to the region’s economy and wider Northern Powerhouse growth strategy with £10 million to be spent over the next year alone.
The announcement is part of an ambitious long-term growth strategy which will see the Y Pellets brand significantly strengthen its international presence within the UK biomass fuel market.
It is anticipated to become one of the largest, private sector, renewable energy investment projects in the country over the forthcoming months.
The new plant is to be built on development land at Goole 36, one of East Yorkshire’s largest and most high profile industrial and distribution enterprise zones.
Using technology developed in Austria, Y Pellets aims to bring premium quality, locally-produced, biomass wood pellets made from UK-sourced wood to homes and businesses nationwide.
ARC Applied Sciences, which has already constructed and operates an advanced European wood fibre processing and pellet manufacturing plant in Austria, will build and operate the plant in Goole.
The new wood refinery site is anticipated to be fully operational by 2019 and will significantly increase the organisation’s European manufacturing operations.
Once construction is complete, ten new manufacturing jobs could be initially created within the first year, with additional employment also being created within the supply chain in the short-term during the construction and development stages.
Neil Holland, director of ARC applied sciences and managing director of Y Pellets, added: “Our vision is to become the leading supplier of premium, high-quality biomass wood pellets in the UK and Europe, and the new refinery will enable us to provide the best possible product manufactured from sustainably-sourced wood and produced by a local workforce.
“This is a massive investment for the UK’s biomass fuel market and the economy in general, both regionally and nationally.
“We’ve already employed the latest distribution technology delivering wood pellets to customers and by constructing the most advanced wood processing facility, we aim to grow our UK presence and continue to establish a market-leading company.
“As well as the site, we’re also adopting and incorporating highly innovative, specialist technologies into our process systems which will allow us to apply a very forward-thinking approach to biomass fuel and raise the bar in terms of quality of product, industry standards and customer service.
“Whilst we welcome the Government’s recent commitment to accelerate the development of forestry in Britain as a resource for the future, other European countries are way ahead of the UK in terms of renewable and sustainable energy supplies.
“Being part of a larger organisation at the forefront of biomass innovation and development, we hope to make a real difference in the industry, for our customers, future generations and to the energy market in general.”
Work is estimated to take 14 months to complete the first phase of construction due to start on-site in Spring 2018.
It is anticipated that the first wood pellet production in the UK could be as early as March 2019 and once fully operational, the plant will receive thousands of tonnes of sustainably-sourced timber per annum from the UK as production levels reach 50,000 tonnes of pellets per year.
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