The Port of Tyne has signed a new contract to maintain the supply of biomass pellets to Drax Power Station in Selby, North Yorkshire.
The new four-year agreement will see the continued import of sustainably sourced biomass with annual volumes of up to one million tonnes, the Port said.
The new agreement with Drax, a customer of the Port of Tyne since 2009, will see biomass pellets hauled from the port by rail to Drax Power Station in Selby, Yorkshire.
The contract includes a £1.5m upgrade to site facilities and rail infrastructure, leading to a more efficient distribution operation.
Port of Tyne chief executive Matt Beeton said: “This new contract will see bigger ships, more trains, and improved infrastructure as the Port of Tyne continues to grow its role in the UK renewable energy market.
“We look forward to deepening our partnership with Drax this year through our ISO 44001 and Customer First programme.”
Mark Gibbens, head of logistics at Drax Power, added: “We welcome this new contract with Port of Tyne, a long-time partner of Drax.
“Our work with Port of Tyne is an important part of our robust global supply chain, which supports the delivery of dispatchable, renewable power to millions of homes and businesses across the UK.”