Iggesund Paperboard is part of Swedish forestry group Holmen.

Work on the contract will start in the first quarter of 2013, replacing gas-power with biomass fuel at the Iggesund low-carbon power station.

According to Stobart, the contract covers sourcing, supply and transportation of forest residue and recycled wood for use as biomass fuel at the new £100m green energy power station at Iggesund's paper mill.

Enhancing the Eddie Stobart's, a segment of Stobart Group, existing transport and warehousing contract with Iggesund, the companies will work in partnership providing low-carbon energy at the plant, drawing on extensive experience within Stobart Biomass and A.W Jenkinson in operating a similar facility in Lockerbie.

In addition, Stobart Group has appointed Alan Kelsey, Paul Orchard-Lisle and David Beever as non-executive directors to its board.

UK-based Stobart Group is engaged in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors.

Andrew Tinkler, CEO of Stobart Group, said: “The supply and distribution nature of the agreement delivers further commercial and efficiency benefits in the group's transport and logistics division, as biomass delivery is added to the distribution contract, facilitating greater fleet utilisation.

“Cumbria is the home of Stobart Group and to play a part in the development of Britain's new Energy Coast is important to the company.  We are proud to contribute green solutions for energy generation in an area traditionally synonymous with nuclear power.”

Will the contract commercially benefit Stobart?

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