Spencer Group is to design and build wood pellet handling facilities, for Lynemouth Power at Tyne Dock in South Shields, creating up to 200 construction jobs.
The client, which operates Northumberland’s Lynemouth power station, has awarded a contract understood to be worth tens of millions of pounds for the handling, storage and rail-loading of wood pellets at the port.
It will handle some 1.8m tonnes a year of wood pellets, with three silos each capable of storing 25,000 tonnes of material. Pellets will leave the silos via two conveying streams to be taken to Lynemouth by rail.
Spencer’s in-house Slipform Engineering technology and equipment will be used to build the silos.
The project also includes construction of a control room, workshops, stores and welfare facilities, and modifications to the rail infrastructure to provide lines to serve Lynemouth Power Station and connect the new facilities to the 11,000-volts mains supply.
Executive chairman Charlie Spencer said: “This is the largest single contract Spencer Group has secured in the materials handling and storage sector and is great news for everyone within the business.
“It validates our long-term strategic focus on major infrastructure projects in the renewable energy field and recognises our industry leading capability in the safe, reliable and efficient movement, storage and loading of biomass materials.”
Spencer has previously built biomass and wood pellet handling and storage facilities for the Drax power station at Port of Tyne and at Hull.