GRAHAM has announced it is progressing with work on the first phase of a new £100m biomass terminal at the Port of Liverpool.

The firms construction division is developing the port, which will eventually handle three million tonnes of wood pellets a year as part of the decarbonisation of Drax Power Station.

The first phase of the new terminal will open in October when four trains a day begin carrying wood pellets to Drax.

The wood pellets – to be shipped to Liverpool from North America – are a by-product of the commercial forestry and saw-milling industry and will provide the Selby-based power station with a sustainable and affordable low carbon fuel source.

All of the wood pellets arriving at the Port of Liverpool will be sent to Drax by rail. Up to ten train loads of pellets will travel to the power station every day in custom-made biomass rail wagons once the terminal is fully completed in 2016.

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Louise Ellman MP visited the site on 7 August to inspect the project, meeting with senior representatives from Peel Ports and Drax Group to find out more about the development.

She said: "This project must be supported as part of The Northern Powerhouse. It will bring great benefits to Liverpool, including innovation, jobs and new trade opportunities.

"It is also a fantastic demonstration of the type of investment that will drive economic growth in the region through new port infrastructure, greater connectivity between east and west and new partnerships between great northern assets like the Port of Liverpool and Drax Power Station."

Drax Head of Supply Chain & Logistics, Graham Backhouse said: "This new Liverpool terminal will add to the facilities on the east coast of England, bolstering our supply chain still further.  A robust supply chain is crucial to our operation as we continue the transition from coal to sustainable biomass providing the UK with reliable and affordable energy."

The terminal will contribute to the ambitious growth plans for the Port of Liverpool, with Peel Ports already investing £300m to create the UK's most centrally located deep water container terminal, known as Liverpool2, due to open in December 2015.

(LM)