Vital Energi has acquired the Port Clarence biomass facility in Teesside from Nuveen Infrastructure / Glenmont Infrastructure, and convert it from a biomass plant to process refuse-derived fuel (RDF).
The acquisition follows Vital Energi’s raise of £175 million through a Nordic Bond issue.
Vital Energi said the acquisition represents its evolution from energy solutions provider to asset owner, following commissioning of the Drakelow energy-from-waste facility. Vital Energi said it would invest in the optimisation of the Drakelow EfW plant to improve its productivity and returns. Drakelow is rated at 18MWe, whereas Port Clarence, which has remained dormant since 2019, will produce over 30MWe on completion.
“This acquisition demonstrates our commitment to owning and operating critical energy infrastructure assets,” said Ashley Malin, Managing Director at Vital Energi. “Following the success of Drakelow, Port Clarence represents our next strategic milestone in building a diverse, long-term portfolio of energy assets that deliver both environmental and economic benefits.”
The conversion will transform what had been a series of stalled development attempts by previous operators into operational infrastructure.
The facility will process up to 320,000t of residual waste per annum under a 10-year 270,000t fuel supply agreement with N+P. The conversion is expected to be completed within 18 months, with first waste anticipated in Q4 2026 and full operational capacity by Q1 2027.